Property development has the potential to generate great returns for investors, but can also go horribly wrong. As one of the highest risk strategies in the property market, any development requires a certain level of expertise and consideration to ensure it is designed and built for financial gain.
As Melbourne’s leading luxury boutique townhouse builder, we’ve guided many clients through the entire process, designing and building townhouses that have generated a great return for our clients.
Here are our top tips on how to profit from a boutique townhouse development.
1. Location, location
Give your boutique townhouse development the best chance of success by choosing to build in a lucrative or growing area. Look for neighbourhoods with good (or incoming) infrastructure and amenities – this may include public transport options, shops, parks, schools and medical services.
It’s also worth finding out if there are any public plans for development or infrastructure in your area that may be detrimental.
2. The block
Not all blocks of land are made equal. When looking for the site of your next boutique townhouse development, there are a number of elements to consider. First is the site orientation – you’ll want to ensure there’s plenty of access to natural light and cross ventilation opportunities in the completed townhouses.
Your new site should also be free of significant barriers or obstructions and be suitable for subdivision. Are there any large trees or structures that could cause an issue down the line? Is the block the right size and shape for easy subdivision? These will all impact the cost you’ll need to outlay in the early stages of your build, and potentially take away from your final profit margin.
3. Target market
What’s important to some people might not be important to others. When planning for your boutique townhouse development, don’t fall into the trap trying to cater too broadly – you will inevitably end up catering to no-one.
To ensure profitability, make sure you develop a thorough understanding of your ideal audience and their needs and goals. For example, do they require access to public transport and schools? Or are they more interested in large spaces to entertain and extra garage space?
Once you know who your ideal target market is, you’ll be able to adapt your design and build to match their lifestyle and support their needs.
4. Choose your builder wisely
A boutique townhouse development is a huge project, so it’s essential you choose to partner with a trusted and experienced builder who will work with you to get the most value out of your investment.
They should have a proven track record in boutique townhouse builds, with a portfolio of completed projects that they can talk you through. They should also be open to answering any questions you may have and be actively providing advice on how to get the best from your block.
If you’re looking to build a profitable boutique townhouse development in Melbourne, get in touch with the Mavi Built team today.