Attention Property Investors: Maximize Your Wealth as a ‘Developing’ Investor, Passively!

property dev melbourne - developing investor graph

We already know that building a property portfolio is a proven method of building additional wealth. People prefer to invest in property because it’s a relatively stable and secure form of investment and provides very good leverage.

The general rule based upon long-term statistics is that property value would double every 10 years (or increase in value of 7 % per year). After a period of time, your initial property would have grown in worth sufficiently to offer a deposit for the second property, and so on.

Yes, there will be on-going costs required for your investment (loan repayments, insurance, rates, maintenance and rental administration), but these will be partly countered by the regular monthly rental earnings obtained and further offset when you claim the outgoings at tax time at the end of each year.

Plus if you purchase a new property, you will also be able to claim its ‘depreciation’ at tax time, and rental income will improve over time while your financing repayments stay relatively the same, so it won’t be long before you will have no ‘out of pocket’ expenses after tax.

However, is this all you can do to gain the most financial advantage?

Instead of looking for a newly completed property, why not source a developable property (that can be further subdivided) and get a massive head start?

How? If you take the conventional approach you need to come up with the 20% deposit plus stamp duty costs with equity from your own sources (let’s call it ‘original equity’ for comparison purposes). That 20% is stored in the property. You then need to wait for this first property to grow in value enough to leverage off it and fund your second property.

By utilising our services and taking a develop, sell and hold approach ( for example develop 3, sell 2 and keep 1) you will essentially be buying at wholesale price for retail value, because the total cost of the development would be less than the value of the finished product.

This profit or value that has been created can actually be enough to fund your 20% deposit in the property you hold, so compared with the conventional approach where your original equity is stored in the property, it is back in your hands to use for something else, like your next property development and investment! No need to wait to leverage off your first property.

Essentially, your property investment strategy can be super-charged, providing the potential for 3 to 4 times the gain over the same period if you develop first. Check out my comprehensive report from the Landeq home page for more detail, or contact me on 0438 028 194 or email domenic@landeq.com.au to assist you with exploring the property development and investment strategies available to you before you make your next investment.

Should you then find the right site, we can plan and deliver the project on your behalf, leaving you without the worries and with more time to focus on other things. Alternatively should you want to take an active role and develop the property yourself, you can still utilize our expertise to guide you through the process. You maintain ownership and control so how you wish to bring our experience to your project is up to you.