The evolution of property
As the price of property increases and the ability for people to find adequate land in metropolitan areas decreases, many new trends have become commonplace in the real estate market.
Apartments or units are the ‘traditional’ response to increasing housing on a single area when land is scarce. Many more single people and families are considering purchasing an apartment or unit due to the convenience of position, the ease of maintenance and in many cases affordability.
Property investors have also jumped on to the idea of townhouses as an option when land is available. Usually a townhouse is cheaper to build (as you are essentially building two or more homes from one structure), easier to organize and will yield higher returns for the owner that a traditional home may not command. Further to this if a piece of land is in a premium position then the townhouse naturally becomes even more valuable.
The ‘granny flat’ is also an option for many people who are looking to increase their income with minimal outlay. Letting a separate small dwelling or a semi-detached room to the actual home is a good way to take advantage of an existing property.
This leads on to the idea of subdividing which is linked in to all the above property trends. Subdivision can be a long and lengthy process that is linked in with varying council bureaucratic red tape. However if you have a sufficient land holding that is sub-dividable, it can yield much greater returns (with more outlay) than a regular home. As you would have realized, subdividing whilst building townhouses or similar may yield even greater returns on the land holding.
So if you are purchasing a new property, in the form of a new townhouse or apartment; you may find these options more relevant and cheaper than a traditional home. If you are an investor, you may find greater returns on reaching that particular market seeking lower maintenance, cheaper housing.
To discuss this concept further, contact Alert Property Group.