A boutique townhouse development can be a great venture for savvy investors, but only if you choose the right site – the wrong block of land can cause more problems than solutions and reduce the value of your investment almost immediately. So how do you make sure you choose the right site?
As Melbourne’s leading development builder, we’ve guided many clients through the process of choosing their block of land for a boutique townhouse development. Here’s what to look out for.
1. Desirability
Your development should be located in a desirable suburb that’s likely to grow in appeal, not drop. Is there a demand for property in the area, or is it at the start of a growth phase? Are there surrounding landmarks or facilities that mean people want to live there, like a beach or school catchments? Is the population expanding? Is it easy to access without a car?
All of these factors will influence how much value you can garner from your investment, so should be considered before purchasing land.
2. Infrastructure and facilities
Infrastructure goes beyond a train station or bus interchange – there are plenty of appealing features that may influence the value of your boutique townhouse development. Is the land near a retail precinct or medical centre? Does it have nearby local restaurants and cafes? Is there lots of green space?
These features can prove incredibly valuable to a potential homeowner or renter, and therefore to you. However, don’t fall into the trap of relying on infrastructure that’s been promised, but is yet to materialise. Large projects – such a train line – are incredibly complex and expensive, meaning they may take decades to complete. It’s better to look for projects that have already started construction or been recently completed.
3. Zoning
Your residential project will fail before you draw up a plan if you don’t pay attention to the zoning laws of the area you’re looking to buy in. The local council will have determined which areas are suitable for residential development and which are valid for commercial development, so it’s essential the land you’re looking at is zoned for a residential project.
Each council has a different way of interpreting and controlling these zones, so take the time to understand how the council works and if there may be extra barriers to entry that you need to take into account.
4. The block itself
Once you’ve narrowed down the suburb you’d like to build in, turn your attention to the nature of the block you’re looking at.
Are there any encumbrances, such as easements, trees, tree limbs or power poles that could affect your plans? Is the orientation of the site favourable? What are the dimensions of the site and will they work with what you’re planning? Does it have the right facilities to make a residential project possible, like drainage and electricity?
Taking these into consideration could narrow down your options considerably but will ensure you get the most out of your investment.
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If you’re looking to start your boutique townhouse development in Melbourne, get in touch with the expert team at Mavi Built today.