Residential Property Development – Due Diligence

by | Jul 21, 2016 | BLOG, Podcast Episodes

You might recall that I mentioned in my previous blog that there are generally two types of property investors:

  1. Passive Property Investor
  2. Active Property Investor

If you are a passive property investor like 80% of the investors, then you will probably follow the more conservative approach of buying and holding properties and waiting for the value of your properties to increase over time.

The buy and hold approach is a proven way of creating wealth long term and there is nothing wrong with it, however if you are in the 20% of the property investment population, you might want to take the matter into your own hands and manufacture the growth yourself.

Small residential property development is one way of expediting the wealth creation process and by small, I mean building four or less dwellings on one title because anything above four is treated as commercial development, which is an entirely different topic.


The Pursuit of The Best Rate

Most of us would have bought a car by now and what did you look for when buying a car? You might have gone through the process below:

  1. Decide what you are going to use the car for? family car? sports car? car for daily commute to and from work etc.?
  2. Determine your budget
  3. What are the desirable features you want from the car?
  4. What about the ownership cost? servicing cost? resale value?
  5. Is it reliable?