im looking at building 4, 2 bedroom units on a block of land but would be relying heavily on a low vacancy rate to service the loan on completion.
*What advise can you give to ensure a strong consistant return?
*Is it possible to approach a hospital or another large institution and organise a rental agreement for all 4 units, to provide staff housing all year round?
*What are some of the potential hurdles or errors investors make when approaching a development like this?I would appreciate any advise as this will only be my second investment attempt.
Ron.Hi Ron,
I presume you are doing a development to KEEP instead of sell?
And you will be using the units as long term buy and hold am I right?
There are many creative landlording techniques to ensure you keep your tenants.
Offer incentives, White goods, TVs
treat your tenants with respect. Remember birthdays, christmas etc
offer a referral incentive, ie pay for referrals if they are going to leave.Approaching large companies is also a good idea.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582I would be employing the services of an experienced, local and enthusiastic PM close to completion stage, to help you in your quest.
Make it easier for him/her by supplying plans and as much information as possible about each unit (including proximity to amenities etc) so that tenants can easily see what the completed product will look like.
Don’t forget that you also need to organise the strata setup as well, so allow enough time for this too.
Happy developing- hope it goes well!Cheers,
Pro-Activehttp://www.invested.com.au Australia’s premier Investor Education site
Maybe even talk to the local PM to see what rents easily/well/consistently in the area? Then decide what kind of development you need.
You know the usual, don’t put in 1-bedders if there are all large families in the area.
For your second investment, sounds like you’re going big! Go hard!
Munjy
thanks for your replies everyone.Is there anyone that has done a similar development that wouldnt mind me asking a few questions. Im expecting many hurdles and would like to avoid these through my due diligence if possible. i would love to talk to someone who has been there.
Ron
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