Property Builder ServiceProperty development is a very lucrative industry. By purchasing or developing land, buildings or facilities, one can build a profitable portfolio. If you think you want in on this industry, talk to property developers. Australia is home to many experts in the field.

You can easily find one that will suit your investment strategy needs. Talking about strategies, there are three common strategies you can use for your first property development investment.

Renting Property

This is the most common investment strategy. Easily, any owner can rent out their property to tenants. But for more profitable options, you could seek a developer’s advice in purchasing existing properties for rental purposes.

However passive, the income generated in this type of investment is constant. Any property can be rented out, from homes to apartments, from warehouses to parking spaces.

It must be clear that not all rental properties will be a good investment. So it is advisable to search for properties that are investment-grade as well as near important conveniences or economic hotspots.

Equity Harvesting

If renting out a purchased property demands too much time from you as a landlord, you can try short-term investment opportunities such as equity harvesting.

Equity harvesting aims to realise the most profitable land-utilisation strategy or improvement-to-the-dwelling strategy (i.e., renovators) in order to ensure quicker and bigger returns.

As renovators, you have to spend for the improvement of certain property and sell them at a premium. This strategy, however, can mislead an investor to overdo things. One can easily overvalue a finished product to the point that profits become low.

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Capital Growth Investing

This strategy is for investors thinking in the long term. By capital growth, we expect the investor to pursue a wider and longer investment horizon. Planning is key in this type of investment as identifying an area to make the investment is crucial.

Selection could end up as a boon or a bane. One will have to utilize the most effective research methods to gather the needed data and information that will make or break the investment plan.