CREATING EQUITY THROUGH PROPERTY DEVELOPMENT

By utilising a system where by you can buy a block of land and construct 2, 3, 4 or 5 plus dwellings on it  has never been so important, in a time when interest rates are rising and just being able to blindly pick a  spot on the Australian landscape and make money is behind us.  

There has never been a better time to plan to manufacture your own equity through property  development, as there is right now with NPI-GROUP by your side. 

With immigration set to soar in the next few years off the back of the recent covid pandemic and as  much as we may not think it, Australia navigated its way through the pandemic very well and is still seen  as very much a destination country for a lot of skilled migrants from around the world. With migration  set to hit 200,000 people this year, they all need somewhere to live, the supply of housing just isn’t in the pipeline. With most of these migrants to settle on the east coast we already know the strain that the  rental market is in, the property market is heading for the same outcome. Supply and demand is one of  the main factors for capital growth.  

The more work NPI-GROUP complete in this industry the more we feel that property development is  seen as bit of a rich man’s game or too risky and that the “average punter” can’t get involved, that is  definitely not the case and if you have owned a property over the last few years you would have gained  some serious equity in that time, and now is the time to release that equity and start to look at  supercharging or starting your investment portfolio by building at wholesale and selling or renting for  retail. 

Property development is seen throughout the industry as something you do once you have a base  portfolio completed and it might be part of a 5,7- or 10-year plan. I challenge this theory and believe it  should be at the forefront of people’s investment journey and the land component among other factors  should be why people buy the properties they do.  

Having the ability to sub divide or add significant value through construction is a very important factor  when building out the portfolio. Just by holding more land with the potential for sub division, this will  mean your land will appreciate more in time because the potential will never go away, we need a lot  more housing in this country, zoning will never change in a negative manner it will always favour  development.  

Once the development is complete, we have the benefit of leasing out a brand-new property, claiming  depreciation on that property, all whilst attracting very good tenants who are willing to pay a premium  to live in a nice house. Repairs and maintenance are virtually nonexistent as we have builder’s warranties in place for up to 7 years.

Once completed, we have brand new dwelling(s) we have options: 

We can keep them in our portfolio renting at a premium  

We can sell down part of the development to release some cash and pay off some debt for another  purchase.  

We can redraw on the equity that we have created through the development to leverage into another  development and rinse and repeat the process.  

Creating equity through property development is no longer out of reach for the everyday aussie and with a little guidance from NPI-GROUP should be at the forefront of every investors mind when purchasing in this or any market.  

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NPI Group: NPI Group is a property investment firm that concentrates on small to medium scale residential development and are making  property investing/ development easy for everyone. We are bridging the gap between the average punter on the street and property  development by using our 3 step method which takes the hassle out of any property investment/ development by completing the acquistion,  the council and building permits and project management of the job from start to finish.

 

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