No Build Property Development: Profit from property without building
When looking at developing small scale projects, sometimes it makes sense to build out a project and other times it just doesn’t
Unless you are adding significant value to the land by building, you might find that subdividing and selling the vacant newly created lots as home and land packages will return better profits and more quickly
We call this strategy “No Build Property Development” and when executed correctly can be a faster way of unlocking the value on some development sites with less risk
The problem is that not all development blocks are suited to this strategy so the question is which sites can potentially give you a “bigger bang for your block”
The answer lies in knowing how the market will view the product (new block/s) you will be selling and understand what the buyers are looking for and this involves market research, understanding building costs and yield capacity of different sites
Remembering the buyer of the new lot will most likely be chasing a suitable block to build a new home, so lot size, location, frontage, R-code zoning and buildability are just some of the important features that buyers will be taking into consideration
Unlock Your Block have managed and delivered many successful “No Build” projects returning a considerable profit within half the time of a traditional building project. Unlock Your Block have extensive knowledge and experience of the process and what buyers are looking for when it comes to buying blocks to build on
So, here’s 5 key areas you should consider when implementing this strategy
How best to sub- divide the land – street front lots side by side vs one behind the other. What are the pros and cons
How many lots can or should be created for the best return – a greater number of smaller lots isn’t always more preferable or profitable than a lesser number of larger lots
What are the most suitable lot sizes for building – frontages vs depths – what’s better and more cost effective for building
What price points do you need to hit in your location– which lots attract the best prices and why
Which locations work better than others and why – not all blocks suit the “no build” strategy – why do some work and some don’t
If you get all of these right, the upside will be
Less cash outlay, as you only have to pay for the subdivision costs for the blocks and not the construction costs of the buildings
Quicker return on your investment as you will receive your funds (and profit) back once the titles are created and the blocks settled, instead of waiting for the building project to be completed
Less risk, as we can help you find buyers for the new blocks before starting the actual subdivision process
To find out more about “No Build Property Development” and if this will work for your project, fill out the form on our ‘Get Started’ page.