If you’re a seasoned property investor you probably have a few properties in your portfolio by now. Maybe one in Melbourne, another one in Sydney, and another one wherever you are located in Australia. And if you’re itching to add another multi-unit development to your portfolio, we recommend considering Perth for your next property development.
Perth’s property market is performing incredibly well at the moment.
With more Australians moving to the “safe haven” of Perth after COVID-19 increased the opportunity to work from home anywhere in Australia, homes in Perth are getting snatched up quickly. In addition to this, the recent boom in metro WA’s jobs market (thanks in part to the record high iron ore prices) has meant more job opportunities and increased population growth in the short/medium term.
Data from CoreLogic has confirmed that Perth dwelling prices rose by 1.5pc during February and 4.6pc over a year. This data indicates that Perth’s property market is performing better than some other Australian states, such as Melbourne with a recorded -1.3pc over 12 months.
THE BENEFITS OF INVESTING IN PERTH’S PROPERTY MARKET
With soft-sand beaches, scenic parks and a thriving metropolis of small bars, delicious restaurants and curated street art, Perth offers everything renters and home buyers would need in an Australian city.
With arguably some of Australia’s best beaches, it’s not surprising many Australia’s want to live closer to Perth’s clear blue water. Some of Perth’s popular beaches include Leighton Beach, Mettams pool, Bathers Beach, and City Beach.
With a plethora of exciting day trip options, your future renters or buyers will never get bored in Perth. The most popular ones include Rockingham and Penguin Island, Swan Valley, and Rottnest Island.
There are many amazing suburbs to choose from for your next investment property in Perth. If you want to build a property investment close to the incredible parks, lively nightlife and street art of the inner city suburbs, consider Bentley, Carlisle or Lathlain. Or there’s Perth’s waterside precinct of Fremantle. For a more family lifestyle there is Churchlands, Dalkeith and Salter Point.
PROPERTY DEVELOPMENT FEASIBILITY
You don’t need to be a seasoned investor to start investing in Perth’s property market. You can start your investing journey now with the help of a Perth property development builder. No matter where you are in Australia, a Perth development builder will take a lot of the overwhelming parts away with expert advice on building a Perth property development.
The right multi-unit development builder will also help you assess whether your potential investment is worth it. Using a property development feasibility assessment your Perth development builder will provide you with a full breakdown of the costs involved and your expected profit. This will minimise the risks involved in your property development and help you determine your ROI before you even begin.
WHY YOU SHOULD HIRE A PERTH TRIPLEX BUILDER NOW
Part of the reason why Perth is a great city to invest in NOW is because Perth’s R-Codes will be changing soon. If you start your building plans now you will have a lot more freedom to build triplexes on a block of land, but if you wait until next year there will be limitations to what you can build on your block of land. This is due to new landscaping requirements: “20% of the block size needs to be green”.
With these changes the total space you can build your multi-unit developments on will decrease significantly, meaning smaller homes, smaller rooms, and potentially only single-car garages.
Jubilee Home Builders are Perth’s go-to property development builders, Triplex Builder and Duplex Builder. With free feasibility assessments and extensive experience helping investors grow their portfolio with Perth’s property market, we make the process easy and simple, no matter where you are in Australia.
Whether you are a seasoned investor embarking on your fourth multi-unit development, or you’re just beginning, we have created a property development guide to help you on your journey.
Download our guide here and begin your exciting journey into becoming a property investor in Perth today.
Contact us on 0895713512 or email [email protected].
Perth’s R-Codes are proposed to change in the next 12 months.
The Residential Design Codes, or R-codes, control the design of residential development throughout Western Australia. This change will affect the number of developments, such as multi-units and townhouses or a triplex or duplex, that you can build on a block of land.
There are many more ways these changes will affect you if you’re a landowner or property developer.
Here is everything you need to know about the changes and what to do about them…
WHAT THE UPDATE TO PERTH’S R-CODES MEAN FOR PROPERTY DEVELOPMENT
Currently, a 728m2 block can accommodate a 3 x single storey triplex development, however, with the new proposed changes, you will no longer be allowed to do this.
This is due to the requirement of additional landscaping with deep soil zones and tree planting on each new development… “20% of the block size needs to be green”.
These new large landscaping required zones will reduce the total space you have available to build your multi-unit development on. This means you will potentially have to build smaller homes, which means throwing away those generously sized floor-plan designs you have.
Smaller homes mean smaller bedrooms, or fewer bedrooms, and no second living (theatre) for the ultimate family lifestyle, with only single garages.
You could gain extra space by building up into a second floor, however, this comes at a greater cost with a longer build time and a higher risk.
The new R-codes will also affect internal room requirements which will give you less flexibility with designs.
As your options are now limited, so is your ROI potential.
Although these changes are out to public comment at the moment, the WAPC has confirmed they would like these changes gazetted in the 4th quarter of 2021.
WHY YOU SHOULD CONTACT YOUR PERTH PROPERTY DEVELOPMENT BUILDER NOW:
That land that you have been sitting on for a while now, with exciting plans to build multiple wealth-generating properties on it, will be worth a lot less in 12 months’ time if it’s not DA approved for development soon.
There is now a deadline (4th quarter 2021) to have plans approved for developments that will increase your ROI and build potential. If you don’t meet this deadline, then the ‘retain and build’ or ‘house behind house’ concepts will be seriously pushed for property development feasibility. This is because the new proposed changes require the existing dwelling to incorporate all of the new changes in the design to the house and also the garden.
Jubilee Homes are multi-unit development builders in Perth with years of experience helping clients get into Perth’s property market and build wealth with property investing.
Contact Jubilee homes today to capitalise on your development project before the R-code changes strip you of your flexible multi-unit development options.
A meticulously planned Perth property development, executed by an experienced team, can yield very significant investment returns. We’ve proven this time and time again with our clients. There are few other investment options that can boast the same level of return, relative to the time and effort involvement of an investor.
It is also no secret that the Perth property market is experiencing a significant boom. Currently, there are less than 3000 houses to rent in all of Perth, compared to 52 weeks ago when there were 6100. Perth is also experiencing a historic low rental vacancy rate of under 1%, with expected rental increases tipped to be between $50-$100 per week for landlords as the rent memorandum ends.
There’s also now less than 8000 houses for sale in all of Perth. 12 months ago this number was 13000. Stock is dwindling and there is strong upward pressure on prices. Don’t wait until it’s too late!
Now’s the perfect time to buy land and develop it. With the market’s growth, the potential profit margin is fantastic, and only increasing.
There are also a few key components that can help you maximise the return on your Perth property investment even more. These include;
A building must be functional, energy-efficient, and aesthetically appealing. To be competitive and to be financially feasible, your development project must create a space that is desirable to the market.
To incorporate and achieve these aspects, you need to engage a specialist development building designer. You need a team that’s an expert at designing developments. Jubilee Home Builders are a local Perth residential construction team. We know the local market, and how to design to cater to higher sales prices. A great design is imperative to the desirability of the home, and the success of your property development venture.
Building on budget
A feasibility study will determine if your development is worth investing in. Including how much to spend and where to spend it appropriately. Building on budget is so important, as cost overruns in property development can negate the assessed profit of a development.
If you make any construction variations, and this is always a possibility, be sure that these variations are within budget range and always get these changes in writing from your builder. There is nothing worse than finding out at the end of the project that your profit has been lessened by variations that have not been accounted for.
At Jubilee Home Builders, we work with an established network of suppliers and trades that are trusted professionals in their fields and experts in development builds. We know what to expect, and our team are great at their jobs, which keeps variations to a minimum.
Completing your build on time
Having a builder that is experienced in property development, and experienced in your build area location, will mean that you won’t be wasting time on council approvals/requirements. At Jubilee Home Builders, we are an efficient, experienced team that will organise your subdivision quickly, based on our years of experience and understanding the nuances of council requirements.
Having a great styling and sales team builder who has recommendations for you.
Once your property development project has been completed, it is now time to put the finishing touches with a styling and sales team. Your development has to look amazing, and it needs to outshine other properties by offering that ‘wow factor’. As established property development builders in Perth, we have a trusted supplier list that we can share with you.
What’s more, is we offer a complete service where we will manage your entire project – from soil testing and engineering, through development application and approval through to completion of the project.
This is great for our interstate clients who want the ROI of a Perth property development but need an expert team to manage the process as they are unable to be on-site.
Whether you’re local, interstate, or international, we will guide you through the process, build it to plan and to specification, and connect you with our professional network as needed along the way.
If you are looking for a property development builder in Perth who can get you the ROI you’re looking for, don’t hesitate to contact us on 0895713512or email [email protected].
Before you embark on investing your hard money on a property development project, you’ll want to know that it’s feasible. The risk, time, and effort has to be worth it, and you want to know that the development will make a healthy profit. Generally, a successful property investment gets a return of 10-20%. This is subjective and the right number for you may be higher or lower.
Whatever your desired outcome/return, do your research before you commit to the project.
The first step in ensuring your project is going to deliver your desired outcome is undertaking a feasibility study. .A feasibility assessment takes into account the land costs, planning expenses, bank payments, and fees, and construction costs. The costs are held up against the current property market prices (likely sale costs) to find out your potential return on investment (ROI). Experience plays a big part in being able to accurately determine the costs and likely return on investment (ROI).
For clients, Jubilee Home Builders offer a free, no-obligation feasibility assessment. We work with a group of trusted investment and development professionals, we help you through every step of your development project, With years of experience in multi-unit property development in Perth, we understand the different markets and where the largest profit potential exists.
To conduct your own feasibility assessment, we’ve detailed the steps involved below.
1. Land capacity
Before you can start your feasibility assessment, you’ll need to know the capacity of your land. That is, what you’ll be able to build on it. This is determined by the council based on a host of factors.
2. Income potential
Based on your initial findings, do your research on the asking prices for similar properties in your area. Note the potential sale prices for each dwelling. This is the fun part!
3. Consider your costs
The main costs to consider in your feasibility assessment are as follows:
• Acquisition costs
• Land deposit amount
• Stamp duty and legals applicable
• Lenders Mortgage Insurance (LMI) if applicable
• Loan interest rate
• Loan to value ratio
• Anticipated loan interest (based on a typical overall timeline of 12-24 months)
• Construction deposit
• Construction loan amount
• Anticipated construction interest (based on a typical build schedule of 6-12 months)
PLANNING AND PRELIMINARIES
• Project Potential Review
• Town Planning (all documents, applications, and permits)
• Preliminaries (working drawings, engineering, etc.)
• Construction (building contract and project specification)
• Complete cost for each dwelling
• Council Public Open Space contribution (if applicable)
• Subdivision fees
• Real Estate Agent fees
Here at Jubilee Home Builders, your design and construct team, we will handle the entire process for you, and provide a complete project management service from start to finish. This means that everything from initial design to handover is in the scope of the construction fee. You won’t have to allow for the ‘Planning and preliminaries’ costs above, as this will be included in the overall project price.
Note: make sure you check this with your builder and are very clear on the inclusion and exclusions of the building contract.
If you’re considering a multi-unit development, give Jubilee a call on (08) 9571 3512 for your FREE feasibility assessment.
How long does a property development take?
How much does a property development cost?
These are 2 of the most common questions that we get asked.
Although many development builders will spin tales of super success in 6 months – the truth is a little more sobering. Clients who trust us and listen to our expert opinion do see a fantastic return on investment, but it’s important to have a clear picture of what that looks like going into the game.
For those new to the market, the actual time and budget requirements of property development often come as a surprise.
Definitely do your online research before diving in, and then make sure you speak to a reliable property development builder who has experienced building what you want to build, and where you want to build it.
Jubilee are professional property development builders in Perth. Joe has been in the industry for 17 years and works primarily in upcoming low supply high demand suburbs, building one-story triplex property developments. In our experience, this has been the best low cost, low risk & high return investment option in the current market. Of course, you need to get customised advice that’s relevant for you before making any investment decision, as this article (and all online articles) can only ever offer insight into the prior experience of others.
Property development usually means that an old property is going to be demolished, and multiple homes (or event apartments) are going to be built on the same block of land. Multiple homes mean multiple titles. This means that the land has to be subdivided if the intention is to sell on completion.
The purchase process, settlement, demolition, design, construction, subdivision, and sale process takes time. It’s important to understand and be aware of this prior to investing in a Perth property development. Once you’re aware of this, prepared for it, and you have an experienced builder guiding you – you’re set to make a significant return on your investment. One rarely rivaled in other investment options.
So what are the actual numbers and timeframes look like with a property development?
Note: the following is an indication of the potential property development costs and timeframes associated with a single-story triplex property development in Perth, in 2020. This information is intended as a guide only. Each individual project will incur differing costs and may fall out of the ranges provided.
|Locating and purchasing a suitable block of land
||4-6 weeks for up to 4 homes
||$5,000 to $15,000
|Council Development Application
|Design and engineering drawings
|Property Development Builder quote and contract
|Financial approval and loan set up
|Perth property development construction
||20-40 weeks pending on the size of the project
||$1,000 – $1,600 per m2 (turnkey)
|Subdivision and new titles (built strata)
||12 – 18 MONTHS
||1 – 3 MILLION
As you’ll understand, providing ranges for property development timeframes and budgets is difficult given that individual circumstances are unknown. There are multiple number of circumstances that effects development costs, some of these include:
- topography of the site – is it flat or has slope/retaining on it
- shape of the block – is it rectangle or obscure shape
- soil type – sand or clay or other
- water table level – proximity to underground water
- Proximity to the coast – close to the coast
- Inside a bush fire zone – BAL rating
- Size of the homes – 2x2x2’s or 4x2x2’s with 2nd living space
- Specification of the homes – standard ceilings and chrome tapware or high ceilings and gunmetal tapware
- The size of the home to be demolished – single or double-story, number of tree’s
- Council fee’s/charges specific to your site – public open space/developer contributions
- Finance – LVR’s and interest rates available, bank or private lending
- Real estate agents fee’s for commissions and advertising – including buyers agents
- Sub-division type – build strata, survey strata, or green title
The estimates we provide to potential clients involve a Feasibility Assessment, which breaks down the actual time and cost investment that your project is likely to require. A Feasibility Assessment also projects expected sales rates and will provide a much more accurate indication of your potential return on investment that the summary above can.
If you’re considering a property development project in Perth, give the Jubilee team a call on 0895713512 or email [email protected]