Develop

The development option can be as simple as buying a large enough plot of land to build a new unit in the rear whilst renovating the existing home. This sounds relatively simple and it can be, but there are plenty of issues to iron out, not the least of which is money and cash flow during development.

You can purchase a large plot of land and hold it. We make sure the property is good enough to lease out and the land has the potential to sub divide at some time. You can then wait until the property has appreciated enough to borrow against the growth in equity in order to do the development or sell off to a potential developer. It may be prudent to organise plans and permits during your holding period.

Further options are available for a more aggressive development of multiple dwellings. This may entail demolishing the existing dwelling in order to get more new units on the block.

This is a strategy that may increase your equity in a much faster time than simply waiting for capital growth.