Joint Venturing is the Way to Go !
With the cost of Private Funds still reasonably steady, and with no changes yet flagged by the RBA on the current Cash Rate, and with the residential property markets still out performing most other asset investments, now has never been a better time to invest into small-medium sized property developments, particuarly ones within;
- a 10 km radius of Brisbane,
- a 10 km radius of Surfers Paradise or Marocchydore
- the greater Toowoomba area
- the greater Ipswich area
- Metro Sydney, Adelaide or Melbourne
From recent experiences, it is the small, potential 6 > 12 townhouse and/or unit property developments sites which are the most profitable once developed, and with these opportunities not always easy to locate, it would not be unreasonable to contact Viking to discuss as we are always aware of good opportunities in this regard.
So what I am saying is this; if you can't find a suitable site yourself, you should be savvy and piggyback of someone else's hard work i.e. someone who has already located a viable site with the potential to obtain development approval for a very well leveridged yield of on-completion product, once a formal DA has been issued.
Typically, these sorts of projects require only
- $2,000,000 > $5,000,000 in total construction finance
- $400K to $600K in cash equity
- 12 >15 months turnaround time to complete
- Limited experience in Property Development
So needless to say, these projects are perfect for small syndicates of 2 to 3 investors.
Another good feature of these investments is that any 'unsold stock' can more easily be retained by the Development Company to reduce tax short term burden, and retained for the ever expanding rental market, if there are several partners involved.
If this is of interest investment appeals to you, please feel free to call me to discuss as we generally have several of these types of project available at any one time.