Multi-dwelling housing or multiple dwellings may not be your first thought when you mull over investment or property ideas, but they are necessary in the scheme of things in higher density areas. Multi-dwelling housing tends to refer to properties such as apartments and units, many of which provide all the necessities that a full-size house can bring to the table.
Confirm Minimum Requirements and Specifications
Before you go ahead with the purchase of your property or your building plans, it is necessary that you double check all measurements to determine whether the size of the property and frontage meets the minimum specifications required by your local government. There are strict rules and regulations in each Australian state to make sure that all building guidelines are met.
Finance May Be a Serious Hurdle
Despite all your well thought out plans, try not to get your hopes up on a possible property venture before you have spoken to your bank or lender. Seeking development finance for multi-dwelling housing can be tricky, and even near impossible, for those without previous building or construction experience. You may find that the banks will not even consider you for such a project without a solid track record behind you.
Do the Math
Building is complicated and stressful without a doubt, but multi-dwelling housing can bring issues that single dwelling homes don’t even have to consider. Make sure you understand this before signing on the dotted line. You don’t want to see your potential profits eaten away by a myriad of unexpected issues. And don’t forget to take into account the GST if you wish to sell. Forgetting to take this into account will guarantee your costs are underestimated and your profits are reduced. A property development accountant can assist you in these matters, so you are fully educated. It is important to understand that in some cases the return on the property may be even less than initially realised, so enter the project with your eyes fully open.
Build a Great Team
In larger scale building projects, it is crucial that you set yourself up with a knowledgeable and experienced team to help you fill in the gaps and ensure your project can get off the ground without issue. Backed by those in the know will ensure you are one step closer to success.
Do Your Due Diligence
Understanding the risks that may occur on a multi-dwelling housing project is crucial to its success. It is only then can you ensure that the risks are minimised at the very least or eliminated in their entirety. You may wish to consider a conditional contract of purchase to take into account planning permits or a builder’s estimate. Due diligence on all aspects can never be underestimated.