Making Use of Existing Land
If you have some spare land or are able to subdivide your plot, then you may wish to consider making a small investment to increase your asset value. Land in Australia is very expensive, and if you have excess, then you will be able to benefit greatly bybuilding upon it. Whenbuilding a new home, the cost of labour is relatively low, and if you plan the process properly, then you can make big wins or consistent profits from any property that you build. This article considers using your land to better use and increasing your asset base.
Building with Land
Developing a property in Australia is remarkably cheap compared to much of the Western World, and investing in a build is oftentimes very worthwhile. Building a home will cost in the region of 300 thousand, but this value can easily be recuperated from the sale of the land and property afterwards.
Investing in building a home on your land will give you the option of tenancy or sale after the build.
Which of these you intend to do will greatly influence the way that you build the home. When building for rental, you will need to consider the layout of the home for individual tenants, and more separation will be required. When building as a sale property, you will instead need to build in a fashion more suited to shared space and family-style living.
Building a property on your land can be very expensive if you go about it the wrong way, but taking the right steps will greatly reduce the costs. Instead of approaching an architect, utilising pre-drawn designs is a far cheaper way to build a property. Kit homes are an excellent solution to minimise the costs of building a home, because much of the work will have been done for you already. When building to increase the value of your land, it is important to cut costs on materials, but also to offer some standout features that will make your property more attractive.
Building without Land
Some of us, however, are not lucky enough to have some spare land on which to build, but this does not rule out building opportunities. Buying investment property ‘off the plan’ is an alternative for those who do not have land to spare, and it can offer much the same benefits of building on your own land.
When buying an investment property ‘off the plan’, you are investing in an unbuilt home and the land it is built on. This is a technique used by developers to reduce the risk that they take when investing in building a property, but it offers some excellent advantages to customers too. As the property is not yet built, your investment will be significantly smaller and somewhat equivalent to investing in building a property on your own land.
Whilst there are greater risks involved in off-plan investment, those people who do not already own land can greatly benefit from this opportunity for a low-cost property investment.