In the modern world, there are many different ways to get rich. Some people buy lottery tickets to try their luck. You have to be very lucky to win, so this is not a way that many people get rich. Then there’s investing, which can be done in real estate, stocks, mutual funds, precious metals, bonds, or other things. Each of these comes with its own risks and possible benefits. And finally, you could become a subdivision developer of real estate. Before recently, companies and people with a lot of money used to develop property to make money. But at Little Fish Property Developments, we help regular people like you turn your land into a gold mine.
So, let’s look at some of the benefits of becoming a property developer in Australia, the land of opportunity.
1. You’ll Save Money
When you build your own property, you’ll save money right off the bat. Still, like any DIY project, there is a lot of risk if you don’t know what you’re doing or have the right skills. You’ll also save money by selling properties before they’re finished. Once the homes are done, the buyers usually pay you within 14 days, so you don’t have to pay interest on the money you’re holding. You’ll see more money, quicker.
2. You’ll Make Money And Get Rich
The prices of homes go up and down in cycles. You can make a good profit if you sell your development at the right time. Smart developers don’t just sell their projects and move on to the next one. They refinance based on the higher value of the new development and use the extra equity as “seed money” for their next project. If you do this a few times, you’ll have made more money than most people do in their whole lives. In the Little Fish office, we have a saying: “Don’t wait around for capital growth; make it!”
3. Getting Money Becomes Easy.
Once you’ve successfully finished a development, you can talk to different lenders about the refinancing we talked about above. They’ll usually be happy to lend you up to 80%, and sometimes even more, of the retail value of your development as soon as it’s done. This will show up on your credit report, making it easier to get money for your projects as time goes on. You have a good relationship with a lender, which is an important part of managing your wealth over time.
4. Proven Tax Benefits
There are good tax benefits to owning a new home, such as depreciation allowances that can lead to a big tax refund. Negative gearing could also help you if you decide to rent out some of your properties. When it comes to renting out…
5. More Money From Rent
The rent your tenants pay will be whatever the going rate is in the suburb where your property is. This means that if you rent out a dual occupancy subdivision that you’ve finished, you’re actually making more money than an investor who bought a similar property off the plan or at market value, because you’re getting the developer’s cut.
6. Financial Security
Lastly, developing real estate puts you in a safe financial position. You have money and wealth, and if you own one or more properties in good areas, you can rest easy knowing that you can sell them if you need to.
