Manor houses are two-stories in height and contain three to four dwellings in the one building depending on the size of the space. In most cases, manor houses have a common entry and provide affordable housing in medium density areas. For this reason, investing in properties such as manor houses, which is a form of low rise medium density housing, does have many benefits.
Know your why
Even at the start of the project, you should always understand why you plan to buy and build manor houses or develop already existing properties. From this basic premise, you can then plan your strategy accordingly. Your strategy will lead to a investment plan which will help you formulate many of the decisions along the way and enable you to better determine location, budget and ultimately your financial expectations.
Fast Track Approval
One of the most significant advantages for investing in manor houses is the fact that with the NSW Low Rise Medium Density Housing Code, builders can apply for fast track approval through the Complying Development Certificate (CDC). Under the new standards, approval can be gained in as little as 20 days to begin building. Of course, there will be added complications and delays if you find your plan does not meet the national standards.
Placing three or four dwellings on the one block of land will help divide the costs and bring a better return on your investment. Whether you intend to live in one home and rent the others out, or sell them in their entirety, there are plenty of opportunities to build on and increase your investment. Always know your budget and allow for unforeseen contingencies.
Location, location, location
While you may be keen to snap up land going on the cheap, understand that building manor houses close to public transport, parks, schools and shopping centres will always be ideal for your renters-to-be. Consider growth suburbs in various neighbourhoods and those areas which are demonstrating signs of redevelopment before you make your decision. Download suburb reports and use online research tools to help you find your ideal property.
If you plan to rent out apartments in your manor house, then aim for functional accommodation without unnecessary luxuries. Spend your money wisely paying particular attention to kitchens and bathrooms which can increase your cash flow. Keeping it fuss free will help keep your costs down especially if you are still paying off the mortgage from your own home. Aim for simple and classic designs that will suit the more mainstream rental market.
Never jump into a manor house development without doing your homework or due diligence. Basing your business decisions on your heart rather than your head can prove to be risky. Speak to the experts and be fully aware of how you can develop the property and increase your financial growth. Utilising a qualified property accountant and a mortgage broker is a great place to start. Understanding both the tax implications and the availability of property loans is in your best interest.