As soon as people inherit money or ancestral assets, they think about jumping into the real estate property market. It is a great way to get high returns from your investment as the property sector in Brisbane is booming right now with Sydney slowing down a bit. To make your journey in the property development segment smooth and hassle-free, we bring you a quick guide to getting started with the process in Brisbane.
Is Property Development Right For Me?While real estate investment is easier to manage, property development is an extensive plan which allows the investor to purchase high performing properties at wholesale prices and to develop them for public use. It encompasses a plethora of development elements such as land acquisition, zoning laws, construction, town planning, marketing of the project and much more. Thus the investors in Brisbane need to be equipped with knowledge about each phase of the process to make the plan work. If you are a first-time investor, then it is recommended to start with a small project so that mistakes would not cost you a fortune. In fact, most of the learning will be done on the job. Therefore, you must be patient, passionate and eager to learn along the way.
Whom To Contact?After you have made up your mind to jump the bandwagon of property development in Brisbane, you need to find the right people who can be trusted and will show you the way towards the successful completion of the project. Depending on the propensity of the project, you will need the assistance of real estate agents, money lenders, insurance agents, lawyers, bookkeepers, town planners, architects, engineers, contractors, suppliers, real estate marketing agents, development supervisors, and construction supervisors. Another vital advisor and point of contact is the property portfolio manager who identifies high return locations, negotiates deals, and helps in finance management.
Expenses and FinancingWhen you make an evaluation of the project with the help of the lawyer and the real estate agent, you must ask yourself if you can afford the expenses and whether this project is feasible or not. You should be aware of the statistics that property investors in Brisbane must understand and get pre-approval from the lenders as banks can make it hard to give loans for complex projects. Also, banks lend only 70-80% of the cost which is given out in phases, and the rest needs to borne by the investor. To examine the profitability of the project, you must sit with property strategists to understand what can be built on the land, how many units can comfortably fit, what will be their size and discuss more such issues.
EndnoteAfter the construction, you can either sell off the property or hold on to it as an asset. Don’t get carried away by the lucrative deals on offer. Consult experts and then move forward with investment in the real estate property market in Brisbane.