You might recall that I mentioned in my previous blog that there are generally two types of property investors:
- Passive Property Investor
- 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.