This is still valid, but an average rental in most suburbs will gross you between $27-30,00 a year, give or take.
And that’s before property manager fees, rates, general upkeep and maintenance and any emergency repairs.
Landowner insurance might cover that, but that’s another added expense.
Sure, a project takes time and some upfront capital, but it is an investment venture that can pay some serious dividends.
Why South East Melbourne?
These are highly desirable, sought after suburbs with a stack of local amenities.
The beach is nearby, as is Luna Park, bustling shopping strips, plenty of great eateries, cafes and bars.
And if nightclubbing if your thing, Chapel St is the place to be.
This makes this part of town a perfect location for property developers in South East Melbourne.
There is some serious money to be made if you understand the property development process and have the right experience.
And if you don’t – you can still make some money by partnering with a project management company that can do the heavy lifting for you.
But we’ll talk about that more later.
For now, we will share an example of a development in South East Melbourne that is set to generate a tidy profit.
Full disclosure here – it’s a development that we are doing at Little Fish.
We do this day in, day out. But it’s a great example, so we thought we’d share it.
One Becomes Two – A Dual Occupancy in Progress
We are currently seeking approval to construct two three-bedroom, three-bathroom townhomes in Balaclava.
Each will have garages garage and offer approximately 24 square meters of living space.
These properties will feature premium design and all the bells and whistles.
The original dilapidated house and land were purchased for $1, 475, 000.
Now, each of these properties, based on the current market, will sell for around $1.5-1.6 million. So, let’s call it total sales of 3.1 million.
If you subtract the 1.475 from the 3.1, that leaves approx. 1.625 million to complete the development.
Pretty quickly, you can see that there is more than enough meat on the bone to pay all the relevant hard and soft development costs, including the construction and be left with a tidy profit.
Now, like other investments, property development isn’t an overnight, get rich quick venture.
There is often a year, sometimes two spent on a project before completion and off the plan sales are settled.
Sometimes delays occur, because of different factors, and there are always development risks associated as well.
The key is that you have contingencies for these delays and risk mitigation strategies before you embark on a project.
This is why we mention you need to know your systems, processes and have a bulletproof plan and watertight feasibilities.
In this game knowledge is power, but it’s also money.
Armed with knowledge, you can generate serious profit.
This is a lot of work and is a high-risk, high-rewards game. But with careful planning, forethought and knowledge, the rewards are there to be had.
And they are significant.
Not Confident? Engage a Project Management Company
Now if you’re reading this and own land in South East Melbourne, you might want to try your hand at a project.
Or, you may not have land, but you might have some equity to access or some working capital.
Our team are dedicated, hard-working, experienced, and capable, and we know our systems inside and out.
When you work with us, our network works for you.
So if you’re considering giving this a red-hot go but lacking confidence and knowledge, that’s where we come in.
We can consult and manage the whole project for you while you stay as plugged in as you want. For some people, this is la lot; others are more casual about it. That’s entirely up to you.
Whatever you want, we’ll work with you and for you.
You can also monitor your project via our dedicated online project portal, and we’ll keep you as informed as you want to be.
Get in Touch
If you’re keen to know more about becoming property developers in South East Melbourne, call us. You can reach the team on 1300 799 277.
We’d love to chat, so get in touch soon.