Mum & Dad To The Rescue
We are in the middle of a housing and rental crisis. It has been prolonged and there is very little hope for a short-term solution; especially when there are builders out there taking years to build even the most basic single storey home. As a property investor, the whole point is to be making some sort of return. Whether that be a tax break in the form of negative gearing or positive cash flow from the current high rental yields available. But if you are waiting months between brickwork and roof cover, not only is there no return … your investment is costing you money that you may never recover!
There is some light in the tunnel though and it comes down to Mum & Dad coming to the rescue once again. There are many empty nesters out there who built family homes on big blocks of land (back when Perth was still an oversized country town) and now have no interest in maintaining the extra land but they want to stay in their own home. There is an opportunity here to create new land in the form of a survey strata and build an investment property in your own backyard.
Yes, there are costs involved to undertake the strata process, but they are a lot less than trying to buy an investment block that someone else has already taken the time and expense to subdivide. For those who have paid off their homes, there should be an equity boost from the land value of the newly created lot. They can also leverage off the value of the newly formed lot to help fund the construction. The bonus is in choosing a reliable builder, such as Activa Developments, who will get your investment property built in a timely manner and to budget. We can also assist with the subdivision process!