While the reason to get into property development is heavily bent on the huge profits to be made, there are many more factors that make it a good investment. Not only are you are assured of constant cash flow, but higher rental return you will earn back from your investment in a period of time make it one of the best investments. Therefore, as enticing as it may seem, ensuring that you follow some set rules will ensure you maximize profits and mitigate risks.
Research on the property
Before you make the investment, you will need to conduct thorough research on the property you intend to buy. Not only do you need to assess the location, but you also need to look at what amenities are available and what future developments are scheduled to take place by talking to the local authority. You will also need to check out what the land was being used before. Thus, by honing your research skills, you will find the right property.
Find out about the title
It will be necessary to establish whether the land title has any restrictive covenants to prevent you from developing. Not only will you also need to find out if all the services are available and can be easily reached, but finding out if there are any permissions to be sought and whether the development would affect the close-by surroundings is essential. This will prevent you from entering into any legal disputes and wrangles.
Location of the property
One of the most crucial factors that will determine your success is location. Although the best location will be expensive, identifying it is very crucial. These areas will include proximity to public transportation, green areas, schools and hospitals. When you find the right location, you will be able to maximize profits when selling the property.
The importance of doing your cost evaluations cannot be understated. It is paramount to ensure that you are realistic with your cost estimation and the budget for miscellaneous expenses that may arise. Additionally, you should always be aware of how every coin is being spent so that you can save as much as possible. Thus, whatever you manage to save will regarded as profit.
Is the seller right?
Finding the right seller will ensure that you find someone who will present you with a favourable price for the property since they are desperate to sell it. Enquiring from estate agents will ensure that you have the proper information as to why someone is selling the property. Some of the background reasons to be looking out for will include;
• Financial troubles in real estate companies
• Owners looking to move abroad
• Couples getting divorced
• Those who are going into bankruptcy and need a quick sale
When you notice these things, then you are assured of getting a good price. The best places you will find these properties will be in tiny internet ads and newspapers.
By observing the tips above when investing in property development in Perth, you will be able to avoid the many mistakes that people often make when venturing into this field and ensure you find the right property to own and develop.