Property Developers Brighton: How You Can Make a Serious Profit

In this article, we’re going to shine the spotlight on property developers Brighton and learn how you can make a serious profit from successfully developing existing land.

Pulling off a property development that makes a profit is a lot like baking the perfect cake. You have a tried and tested recipe, and you stick to it.

If you skip a step in the development process or substitute an ingredient, often you end up with a subpar cake.

Similarly, in this game, if you rush things or get too emotionally involved, you can scupper a successful project.

And one piece of the recipe is the right location.

Side note: check out this article on property developers in Brighton East, it breaks down why building a dual occupancy beach-side makes every bit od sense.

Brighton: A Jewel of Melbourne

Brighton, located in Melbourne’s southeast near the bay, is a desirable suburb to live in and one of the best suburbs to build a dual occ in Melbourne.

It’s close to the beach, near trendy St. Kilda, and features street after street of gorgeous homes, as well as proximity to many local amenities.

From public to private schools, golf courses, parks, cafes, restaurants, bars and more – it’s a dream location.

If you take a walk or drive through Brighton today, you’ll notice townhouse developments popping up left, right and centre.

And there’s a reason for that – there is money to be made.

We’re seeing townhouse projects Melbourne wide take shape in suburbs like Brighton, where smart design and savvy site selection continue to deliver strong returns.

And we’re not talking spare change; there is some serious money for property developers in Brighton if they play their cards right.

How Do Property Developers Make Their Money?

This is a great question. I have answered it in detail in this article here.

Property developers make their profit by identifying prime development sites to construct dual occupancy subdevelopments on. By this, we mean two or more townhouses.

These properties are put on the market off the plan as construction commences and are sold for the market value of a townhouse in the suburb.

If you multiply this profit by three or four, or whatever the number of properties is, you can make some serious profit.

We’ll give an example of a development in Brighton below, it should give you a feel for how much money can be made.

Are you Considering it for Yourself?

If you own land in this suburb, no one is stopping you from becoming property developers Brighton.

Even if you don’t have land, but are considering investing in property development, Brighton is a brilliant suburb to consider doing a dual occupancy townhouse development.

But this isn’t something that you can dive into straight away.

Like we said above, there are a bunch of moving parts, and you need to have some decent knowledge and experience in property development project management.

A bit further on in this article we’ll explain what you can do if you’re keen but are uncertain or lacking the confidence to try this yourself.

But for now, let’s look at an example of property developers Brighton making some serious dough.

If you’re working on a dual occupancy or townhouse project, engaging experienced subdivision builders in Melbourne can help streamline your timelines, reduce costs, and avoid costly mistakes.

An Example Property Development in Brighton

Let’s dive into an example of a successful real estate development in Brighton.

Let’s look at numbers 8 and 10 Maysbury Avenue in Brighton.

Now, number 8 (above) was sold for 2.65 million dollars in 2018.

It was then subdivided into two lots of land, numbers 8 and 10, and the developer built two separate properties on each.

Number 10 (see below) sold for 2.68 million dollars in 2020, and based on that sale it is fair to assume that the second property sold for a similar figure or is at the very least worth that much as an asset.

So your total sales amount from both properties sits around 5.33 million.

If you then subtract the purchase price it leaves 3.08 million to complete the development.

Although some of that would be pumped into soft and hard costs associated with the development including the duplex build itself.

There is still more than enough meat on the bone to assume that the developer made some serious money on this project.

This is why we’ve highlighted property developers Brighton for this article.

This suburb can be a fantastic place to develop if you find a suitable lot and know your systems and processes.

This is a local example of how to make money from property development, combining the right suburb, strong site selection, disciplined feasibility, and repeatable execution to create profit.

Timelines

As you can see from this example, residential property development isn’t an overnight venture. The development lifecycle takes time to complete.

There is often a year or two spent on a project before completion.

Delays can occur, due to various factors, and there’s a level of risk to manage as well.

But, for a savvy developer who knows their systems and processes well, it can result in a tidy sum in the bank at the end of a project.

Engage the Professionals

Now you might be reading this and own land in Brighton.

Or you may not own land there, but you may have some capital that you’re thinking of investing in a venture, and property development is looking like a good idea.

If you’re researching the best suburbs to develop in Melbourne, Brighton East is often part of that conversation thanks to its strong demand, premium values, and proven development outcomes.

And it is a good idea, but like any investment, there are risks.

And this is a high risk, high reward venture. But, if you are armed with knowledge and can mitigate risk, you are heading for a payday.

Little Fish Property Can Help

What we do at Little Fish, day in, day out, is manage these attached dual occupancy home designs in Victoria.

We operate all over Melbourne and simultaneously manage multiple projects at once. It’s all that we do.

We are experienced, capable, and have our systems and processes highly refined.

We also have access to an established network of professionals, including town planners, conveyancers, sales agents, townhouse builders and more.

If you’re considering becoming property developers Brighton, but lack the knowledge and confidence, that’s where we come in.

We can development manage your project for you, and you can learn as much or as little as you like.

Some people want to sit back and take an “armchair” developer approach. Say your project is in Carnegie, we have the relationships to connect you with Carnegie’s best builders.

At the same time, others love to keep us there as a property development advisor to learn and collaborate with which we are more than happy to do.

Whatever way you want to go, we work for you and follow your lead.

You can also follow along with your project via our custom project portal, as we keep you in the loop throughout the entire duration of the project.

Get in Touch

So if you’d like to chat with us about becoming property developers in Brighton, please feel free to book a free call with our expert property development team anytime. Click here to book a call now.

We are expert property development consultants that can either work with you to maximise the value of your land or work for you to identify a prime site and develop it for profit. By tapping into our extensive property development network and leveraging our expert buyers agent service for development sites, we help clients secure high-potential sites, connect with the best professionals, and execute profitable residential developments with confidence.

Get in touch today to learn more.

Filled under: All Developer Insights