Why Work with SEQ Property Development Pty Ltd
Most wealthy individuals regard property as a secure investment vehicle. Research indicates that 85-90% of financially independent people in Australia use properties as their investment vehicle. To use property investment as a wealth producing vehicle more efficiently, we should understand the value of the properties in different stages. The following figure summarises the value change of properties in different stages of development.
The meaning of the terms in the figure are:
- Rural use: the land can be used for rural purposes or parks, but cannot be developed into urban use.
- Urban use: the land can be developed into urban use.
- Land with DA: the land has a development approval.
- Land can be built: the land has been developed and has all services accessible such as sewage, water, electricity and telephone.
- Property: the land has an improvement such as a house, units, shops, etc .
The percentages marked in the graph relates to the percentage of a value increase in the different stages. Property development means a process in which the urban use land is developed into properties that can be used by end users. The profit margin of the development process is about 40% gross.
Investors will receive different returns depending on when they enter the development process. In general, investors can enter the property market at two points:
- Purchase built property for rent (called property investment): the investors enter the market in the last stage of development. They purchase the property from a developer or owner. In Australia, the annual increase of existing property value is about 6-10%. The advantages of the property investment include: (1) out-of-pocket cash is small; (2) risk is low; (3) suits long term investment, especially for negative gearing. The disadvantage of the property investment is that the entry price is high. You can read more details in investment seminars.
- Involve development (called capital investment): the investors enter the market at the development stage. The advantages of capital investment is that the entry price is low and return is high. The disadvantages are: (1) cash investment is high; (2) require high professional skills and experience; (3) risk is high. It suits the investors who have large investment capital and can take on greater risk.
SEQ Property Development Pty Ltd is a professional project manager. It can provide the professional skills required to fully manage a development project for investors. SEQ Property Development Pty Ltd can take most of the risk out for investors who can become passive investors and receive the development profit without doing the development job. This is what SEQ aims to achieve for investors. Together, we can complete projects that make a bigger impact on the community.
