Why Should You Invest in Multi-Unit Developments?

28 September 2020

The construction of multi-unit developments has been growing over the past few decades as the population continues to grow all over the world. After all, multi-unit developments are comprised of more than one dwelling that is constructed and built on one lot. Here in Australia, there are numerous types of multi-unit developments that property owners can build and invest in.

One of these types is the subdivision. This type of multi-unit development caters to a land that is usually split into two parts: one part for the existing house while another for a new dwelling. Another type of multi-unit development is duplex, which is a building that is comprised of two homes separated by a common central wall. A triplex, alternatively, is three adjoining homes that normally share one common driveway. Townhouses and apartment buildings are also part of multi-unit development projects.

Investing in these multi-unit development projects can bring a lot of benefits. Some of these benefits are:

High Income Returns

Multi-unit development projects can be a great source of steady income, especially if they are done and managed by high-profile professionals. Whatever type of multi-unit development project you decide to build, you are certainly guaranteed to receive significant income returns of approximately 20% net profit since it involves the utilisation of a specific piece of lot or land. This specific percentage surely outweighs other investment options that are available in the market right now. As for your team of professionals, you may expect to work with talented designers, engineers, legal experts, and real estate agents.

Mortgage Payment

Usually, property owners would apply for a mortgage loan so that they can fund the construction of their development projects. If you have applied for one, then the payment for it will already be taken care of by the total payment that you will receive from your tenants. As mentioned, multi-unit developments can house numerous dwelling in an individual lot. Any occupied unit guarantee rent payment, which can be used in paying for the mortgage that you have acquired from lending institutions. So, aside from receiving income, your rental fees can help you cover any existing debt from your mortgage loan.

Huge Tax Incentives

Multi-unit development projects are properties that may not be sold right away, which makes them part of a long-term rental investment. And since you are providing adequate housing for the residents in a specific town or community, then you are surely provided certain ways to cut down property-related taxes. Tax incentives are normally given by the government and authorities to property owners who have built multi-unit development projects. With these tax incentives, all the savings that you can get from these can be consequently diverted into added revenues.

High Appreciation Rates

Just like other real estate properties, multi-unit development projects can likewise appreciate steadily and constantly compared to other types of investments. Some types of investments may suddenly depreciate, while others appreciate significantly but can depreciate rampantly. However, with development projects, you can expect their value to steadily increase over time, especially if you have maintained these projects properly and regularly. The appreciation rates of these multi-unit development projects may be slow at times, but they are guaranteed to be much less volatile than others.

Investing in multi-unit development projects can truly bring you benefits over other types of investments. If you are thinking of investing in development projects, you must hire a professional developer than can help fulfill your lifetime goals.