4 reasons to subdivide your block and invest in a unit development
As the housing demand in cities grows, homebuyers are becoming increasingly interested in the idea of multi-unit developments. Whether it’s by renting the property or reselling at a profit, subdividing your block can make a lot of financial sense and prove a fantastic investment for the future.
Multi-unit developments in Melbourne are highly sought after and, when done correctly, can provide average returns of approximately 20% net profit.
Hiring a design practice specialising in town planning and unit developments is crucial when making the decision to subdivide your block. The team at Prestige Plans can guide you on this exciting journey and make sure you reap the benefits of investing in a unit development.
Read on to discover why subdividing your block could be the right move for you.
1. It makes financial sense
As mentioned, a unit development can be highly profitable. While some investments can be difficult to understand, the property market is fairly straightforward and most homeowners will already have a reasonable understanding of it.
When you subdivide your block, you can stay in one unit while selling or renting out the others. This means there’s no need to move or buy a new home and you can simply enjoy the profits of your unit development. In most cases, the money you make will cover all your outgoing home costs, meaning the mortgage takes care of itself – and there’s no better feeling than that.
2. Property is a great asset
If you’re looking towards the future, property can be a great place to invest your money and ensure you’ll be comfortable in retirement. The property market moves relatively slowly and is generally less volatile than other investments. The demand for housing in Melbourne shows little sign of slowing down, making it likely you’ll find buyers or tenants soon after the units are complete.
3. It could be time to downsize
Many homeowners find themselves asking whether they really need the space they have. Maybe you’re a busy young professional with little time to spend on maintaining a large house, or you’re in a position where the kids have moved out and there are rooms going spare. Rather than uprooting entirely, you can stay in the area you love while finding a new use for all that extra space by subdividing and creating multiple smaller units.
4. It gives you flexibility
If selling or renting your units in a long-lease contract seems like a big commitment, you could keep one (or all) of them free for other purposes. Examples include moving elderly relatives in for peace of mind or keeping them for older children who might return during breaks from university or over the summer.
While they’re empty, consider short-term rentals via services like Airbnb. If you have children, you may like to rent the unit(s) out temporarily, then pass them onto your kids as a handy step up onto the property ladder when the time is right.
If subdividing your block and creating a unit development sounds like the right move for you, get in touch with the team at Prestige Plans today.
