Terrace houses are mainstay features in Australian cities such as Melbourne and Sydney harking back to the Victoria and Edwardian periods of the 1800s. Back in the day the narrow-sized terrace houses were seen to be a great investment and enabled investors to maximise the returns on the available land on offer. And the keen interest to invest in terrace houses, period or otherwise, still remains in modern day Australia today.
Government Changes Work In Investor’s Favour
Thanks to the recent changes by the NSW Government in relation to the Low Rise Medium Density Housing Code, fast track approval can be granted on terrace houses through the Complying Development Certificate (CDC). Provided you meet the government guidelines in terms of your land size and prospective terrace house plans, you should be able to seek approval on your next terrace house project in as little as three weeks. This shortened timeline makes the whole process more efficient and ultimately more cheaper from start to finish.
Be Aware of the Updated Guidelines
For those looking to invest in building projects in zones R1, R2, R3 and RU5 and aid in the affordable housing shortage, terrace houses with the updated lower minimum land requirement may just be for you. If the block size is a minimum of 18 metres wide and at least 600 square metres (or the minimum lot size in accordance with local council), the necessary approval can be sought quickly and easily. Remember that each dwelling must face the public road and no terrace house can be situated behind a second dwelling. For more information on the CDC guidelines, visit the NSW Government Planning and Environment Website.
Know your End Game
For investors seeking a retirement nest egg or looking to build upon their property portfolio, terrace homes are seen as a viable option. It allows you to not only provide a home for yourself, but it gives you the opportunity of having up to two properties to rent or sell when the time is right. As long as you stick to your budget, weigh up the pros and cons carefully and are purchasing in a growth area near to schools, local shops, restaurants and public transport, getting on the road to financial freedom may be easier than you think.
Be Diligent with your Research
Investing in terrace houses needs to be done on more than a hunch, and you can’t just buy a property because you like it if it is not going to help your investment grow (unless you are independently wealthy and investment growth is not your aim). Research the area in depth to source the best location for your needs. Seek tax and mortgage information from the experts and aim to get a pre-approved loan before you sign on the dotted line. Chat to architects about ideas for cost-effective floor plans which will help see your terrace house project come to fruition. Backed by your research, you will be able to decide how next to proceed and avoid projects which are going to be a drain on your resources.