There are many different paths to wealth in modern Australia. Some people rely on chance and buy lottery tickets. You need to be very lucky to win, so not many people achieve wealth this way.
Then there’s investment – in either property, stocks, mutual funds, precious metals or bonds. Each of these bears their own set of risks and potential rewards. And finally, there’s the option of becoming a property developer.
Until recently property development was something that companies and the extremely wealthy did to generate profit. But at Little Fish Property Developments, we assist regular people like you to turn their assets – their land, into a gold mine.
So, let’s check out some of the benefits of becoming a property developer in Australia, the land of opportunity.
1. You’ll Save Money
Right off the bat you’re going to save some bucks when you develop property yourself. That being said, like any DIY project there is a considerable amount of risk if you don’t have the required knowledge or experience. You’ll also save money by selling off the plan, as once the properties are completed, they are usually settled with the buyers within 14 days, so you don’t have to keep up with interest holding costs. You’ll see more money, quicker.
2. You’ll Generate Profit and Wealth
Property values swing around in cycles. By selling your development at precisely the right time you can make a solid profit. You’ll notice that savvy developers don’t just sell their projects and move on. What they do is refinance against the new developments higher value and use the extra equity they’ve created as “seed funding” for their next project. Repeat this a few times and you’ve generated more wealth than the average person sees in their lifetime. We have a saying in the Little Fish offices “don’t sit around waiting for capital growth, create it instead!”
3. Getting Finance Becomes a Breeze
Once you’ve finished a development successfully, you’ll be able to approach various lenders to do the refinancing we mentioned above. They’ll often be quite happy to lend you up to 80%, sometimes more, of the retail value of your development as soon as it’s finished. A track record of this will show on your credit rating which means it becomes easier to fund your projects as time goes on. You’ve established a great relationship with a lender which is one of the keys to ongoing wealth management.
4. Proven Tax Benefits
Owning new residences gives you solid tax benefits, including depreciation allowances which often result in a great tax refund. If you choose to rent out some of your properties, there is also potential to benefit from negative gearing. Speaking of renting out…
5. Higher Rental Yields
Any tenants you get in will pay whatever the market rate for rent is in the suburb your property is in. This means that if you rent out a dual occupancy subdivision that you’ve completed, you’re actually getting a higher return than an investor that bought a similar property off the plan or at market value, because you’ve pocketed the developer’s piece of the pie.
6. Financial Security
Finally, developing property sets you up in a secure financial position. You’ve generated wealth and capital and if you own one or more properties in prime locations you can rest assured, knowing you can sell up if you need to.
Want to Know More?
If you’re curious about becoming a property developer after reading this, reach out to us here at Little Fish 1300 799 277. We can explain in more detail the benefits and help you to achieve a position of wealth and security.
If you own some land – great, if not that’s okay too – with some capital you can acquire a prime site and begin the process yourself. We’d love to hear from you!
Publisher Website: http://littlefishproperties.com.au