Investing in Property Development

An investment strategy with attractive risk-adjusted returns that is suitable for any investor wanting to grow their wealth and supplement income.

Investing in property development is an alternative to traditional property investing that offers superior returns

Investing in a property development project allows an investor to gain exposure to that project, and the property market, without taking on the full burden of property ownership themselves. Property is an asset class that has performed exceptionally well over the last 40 years, and it is stable and not susceptible to rapid market fluctuations. However, buying an investment property comes with responsibilities and burdens that do not suit every investor and their needs. Investing a property development instead provides investors the best of both worlds—this is what we offer.

A set-and-forget
investment solution

Empirically demonstrated
diversification benefits

Exceptional risk-adjusted performance

Stability & security

What is property development?

Property development, also known as real estate development, is a business strategy that encompasses a variety of practices designed to increase the value of a property so that it can be resold for a profit. On a smaller scale, this may include activities such as the renovation and resale of pre-existing properties (colloquially known as ‘flipping houses’). On a larger scale, this includes activities such as converting an established dwelling into multiple smaller dwellings or building on unused land.

Unlike a buy-and-hold strategy, which relies on market forces exclusively to generate a profit, property developers generate a profit by converting land (or an existing building) into a new property (or properties)—with a higher price.

Before

In-Progress

Completed

Before

In-Progress

Completed

Why invest in a development?

Investing in property development is ideally suited to investors seeking high growth.
Property development can generate exceptional returns, but it does necessitate some restrictions that are not suitable for every investor.

Pros

High returns
Indirect exposure to the property market
Low volatility
Low correlation with other asset classes (diversification)
Investment is managed for you
Compatible with SMSF
Property developments are catered to investors with a long-term focus who want a set-and-forget investment solution.

Cons

Illiquidity – capital cannot be withdrawn until the project is completed and sold
Delays can occur which increases the investment term
Investors have no control over development decisions

Lion Property Group Investment Portfolio

Our portfolio of public property projects has a combined completion value of approximately $148 million. This portfolio is diversified by property type as well as geographic location.

Diversification by Property Type ($ value)

Diversification by Location ($ value)

Long Term Investment in Property Development

Capital Growth over 10 Years (5 sequential investments)

The table above forecasts capital growth based on the following assumptions derived from our investment product averages:

An initial sum of $500,000 is invested.
At the end of an investment, all capital plus returns are reinvested.
The return of each investment is 35% net.
The term of each investment is 2 years.
Tax is not accounted for.

Based on these assumptions, an initial investment of $500,000 will grow to $2,242,000 in ten years, an increase of 348%.

Tax Information

For Australian Residents

Your returns are considered income, and are subject to income tax. We recommend consulting an accountant to determine how an investment will be affected by tax.

For International Residents

Prospective investors should inform themselves as to the legal requirements and consequences of investing with Lion Property Group according to the countries of their respective citizenship, residence, domicile, or place of business.

Who can invest?

Any entity that is legally able to invest in Australia is eligible to invest in our opportunities, assuming they meet the minimum investment requirements of a particular opportunity.

Individuals

An individual can invest in our projects using their personal capacity. However, not all individuals will be eligible for every offer.

Corporations

Corporations can invest in our projects, and the agreement will be made in the name of the company.

Trusts

Trustees can invest in our projects on behalf of the Trust they manage.

SMSF

Some of our offers accept investment from self-managed superannuation funds.

Reinvesting to build your wealth

Our goal is to establish long-term relationships with investors by consistently providing exceptional returns on their investments. As such, we provide investors the ability to automatically roll over their investment into a new project at the conclusion of their initial investment term.

Investing in Property Development