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8 Reasons Why Property Development Should Be Your First Property Investment Choice
If you like a bargain, a new property, and would like to save your precious time, then unlocking the equity locked in your property might be the best option for you.
First of all, you already own the land and hopefully you do not have a large debt on it. This means that you do not have to go out looking for another investment property.
Why? Because when you buy a new investment property, more than likely you will negatively gear it and carry it’s weight on your shoulders until it shows any capital gain.
However, when you unlock the potential in your own property i.e. you achieve the highest best possible use your land, you get access to FREE EQUITY, which can be used to convert a single dwelling into two or more dwellings. In other words, you strategically develop your own property.
Developing is not a scary word especially when you have professionals handling the entire process for you. More over, by using our positive property development strategies, the new properties that you develop out of your singe dwelling come at cost price – giving you access to instant equity. Below are some of benefits ...
... that you can enjoy by developing your own property.
1: Profit- when you construct your own property, you have more dwellings at cost, which you can either sell in the market for instant cash profit or you can decide to keep the profit in your properties or a mix of both.
2: Deposit – You can use your profit as the deposit for your next investment or purchase your completed property as an investment.
3: Capital Gain – You can achieve instant capital gain, as you just acquired the property on cost, rather than retail as most of other investors do.
4: Rental Yield - Higher rental yield because you acquired the new property at developers cost – which is always lower than the market.
5: Tax Benefits - If you develop and hold your properties, you can claim substantial depreciation write offs and avoid capital gains tax.
6: High Return on Capital - because you leverage the existing equity in your property, the upfront payment is far less than the return. Therefore, your return on the new capital invested can be in the range of 80-100%.
7: Portfolio Explosion – When you acquire properties at cost, you can acquire a lot more properties in short amount of time, thus achieving instant portfolio growth at the same time.
8: Savings - if you are following a “develop and hold” strategy, you can avoid stamp duty, agent’s commission, marketing costs – all of which will add to your bottom line.
Everyone loves money, and with money comes lifestyle. Apart from the apparent benefits above, you will enjoy superb lifestyle. You will become the MASTER OF YOUR DESTINY and improve your quality of life and of those around you. Imagine the possibility of never having to look at the price of an item before purchasing it. Imagine having to book a flight to your favourite destination, half way across the world, without having to worry about the dent on it can make on your back pocket. All this and much more is possible, only if you decide to, all you have to do is make a choice.
Amber Khanna is the owner of Positive Property Pro. POSITIVE PROPERTY PRO is a property development company based in Melbourne & Brisbane specializing in helping people unlock the potential in their own properties.
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