Multi-unit developments are all the rage these days. A lot of people are putting up dual occupancy properties looking to maximise the use of their land and to rake in some passive income. If you are in the same position and are planning to set up a similar development, this article helps to provide you with a checklist which should indicate whether yours is a good plan or not.
Planning permissions in your area
Before you can develop anything on your property, you first need to clear it with your local council so that you can get the needed development consent. So even if you have land that you would like to develop, plus the finances to make it all happen, your dream of owning a multi-unit development is first hinged on the local council's planning restrictions in your area. Talk to them about it or consult dual occupancy builders in your locality for a breakdown of the status quo.
Prevailing market trends
As with any other product in the market, you should also investigate the market's perception towards multi-units before breaking ground. Although such developments are becoming popular in many areas, it is not wise to assume that that is the case in your area as well. Real estate developments are very sensitive to locations. So first consult professionals in real estate and get a feel for the demand. Talk to building contractors and estate agents to find out what they know first.
Return on investment (ROI)
Another consideration you need to make is the potential return on investment. How much money do you need to invest and how much income will you get out of it? Luckily, multi-units are quite profitable. They do not cost as much as apartment blocks, they are easier to manage and they do fetch good prices, especially in high-demand locations. Either way, find out what the going rates are in your area and then compare that with what your builder is charging for the development.
Long-term use of the property
Another factor you should consider is the long-term use of the property. Once you build multi-unit houses, the property will remain as such for years to come. If you plan to retain the property as a commercial residence, then that is a very good thing. However, if you live on the property and do not wish to fully convert it into a commercial complex, then consider options like building mobile granny flats. These can later be relocated, if need be, thus reverting your property to a residential development once again.
If everything checks out and you get positive data regarding multi-unit developments, then by all means proceed and make your goal come true. If not, then take caution and consult industry experts on how to create a successful multi-unit development without risking your investment.