property developers south east melbourne

Are you wondering how property developers South East Melbourne make their money?

In years gone past, the primary way that people generated passive income from real estate was by building a property portfolio of private rental homes.

This is still a valid method, 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.

Sure, landlord insurance might cover that, but that’s another added expense.

By doing a dual occupancy subdivision project on a suitable site, savvy property developers can gross much more, all in one go.

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?

South East Melbourne includes suburbs like St Kilda, St Kilda East, Windsor, Ripponlea, Caulfield, Prahran and Balaclava.

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.

st kilda melbourne

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 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’re going to 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

ground floor

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 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.

Timeframes

Now, like other investments, property development isn’t an overnight, get rich quick venture.

get rich quick meme

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.

Either way, if you want to attempt this form of investment, at Little Fish, we can assist you in getting started in the property development game.

development management phases

We are dual occupancy specialists. We manage these types of projects all day, every day, all over Melbourne.

Our team are dedicated, hard-working, experienced, capable, and we know our systems inside and out.

We also have our working network of other property professionals, including sales agents, town planning specialists, townhouse builders, conveyancers and more.

When you work with us, our network works for you.

So if you’re considering giving this a red hot go, but lack the 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 way you want to go, 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

development project manager

If you’re keen to know more about becoming property developers South East Melbourne, give us a call. You can reach the team on 1300 799 277.

If you have land we can make it work for you if you don’t – we can identify a suitable lot and assist you to do a side by side dual occupancy development on it successfully.

We’d love to chat, so get in touch soon.