The first thing we do for any potential Development is create a preliminary plan for how the land will be used, including questions such as:
- How many properties can fit on the land?
- What price can we expect for each property?
We use these figures to create an estimate for the total income that the project will achieve. We may experiment with different layouts and property types to achieve a higher income.
Next, we calculate all the likely expenses that are necessary to complete the Development. At a minimum, this includes costs for the following items:
- Land Purchase
- Land transfer
- Development management
- Loan interest
When calculating expenses, we use conservative estimates to reduce risk. We also include a contingency in the budget of 2-5% of total costs, depending on the degree of uncertainty within the project. This is also a risk-reduction measure to avoid going over-budget
Each of our Property Developments undergo this process to ensure that we only offer a high return investment to our clients.
You can find the feasibility report on each of our high return investment projects by reading the Information Memorandum. The Information Memorandum allows investors looking for a high return investment model to examine the finances behind the project and make an informed decision.
High Return Investment Outcome
Our high return investment developments typically offer returns of 30-40% over 24 months. We also structure our Developments so that investors own a share of the land. This secures each investor’s contribution against the land and offers investment security.
This combination of high returns and security is why we have a community of over 200 active property development investors and tens of millions under management.
Properties that used to be sure-fire winners in the pre-coronavirus world, may not be in the post-coronavirus world.
There is another investment option available that allows investors to capitalize on the excellent performance of Australian property.