While many markets have become unstable over the last 12 months, the property market remains strong. It makes sense – there will always be a need for housing all over the world, but particularly in liveable cities like Melbourne.
In fact, despite the global pandemic, the last 6 months has seen an increase in the number of people buying and renting throughout Australia, and there has been a huge increase in enquiry for new apartments and multi-unit developments in particular.
At RODA, we’re often approached by clients who are interested in multi-unit developments, but who have concerns about whether it’s the best financial option for them. Of course, this will depend on your land, your design and your personal situation, but when planned, designed and built in a certain way, a multi-unit development can see a big return on investment.
Keep reading to discover why we think multi-unit developments make perfect financial sense in 2021.
Why a multi-unit in Melbourne?
Melbourne is renowned as one of the best, most liveable cities in the world. With exceptional infrastructure, an excellent education system, a highly-functional transport system and plenty of cafes and restaurants, there’s no wonder there’s huge demand to live within the city limits.
A well-planned, high-quality multi-unit development in a prime location of the city will undoubtedly have wide appeal to investors. At the end of the day, a multi-unit development is all about supply and demand, and if there is great demand for affordable, accessible housing in a certain stratum of the city, we think it can be a great investment option.
Why undertake a multi-unit development now?
If the statistics are to be believed, the demand for multi-unit living has been on the rise for some time. Data from the 2016 Census shows a 38% increase in those living in townhouses and a 3% increase in those living in apartments between 2011 and 2016.
In the next two decades, we predict demand for multi-unit developments will increase, as people look to take advantage of the thriving property market.
How will I see a return on investment?
When investing in a multi-unit development, you’re essentially investing in several properties at once. Say you engage RODA to build a three unit development in Coburg – upon completion, you will now have three properties which can be sold, rented or lived in. This opens up the possibility to generate income through multiple earnings on several units, instead of one property.
While building a custom home is likely to bring return on investment when it comes time to sell, a multi-unit development allows you to generate income immediately should you choose to. While you generate funds through rent, the land value will likely increase, which will lead to a secondary return should you sell in future.
Looking to kick-start your very own multi-unit development in Melbourne’s north? Get in touch with the expert team at RODA today.
Disclaimer: The information published in this article is of a general nature only and does not consider your personal objectives, financial situation or personal needs. Where indicated, third parties have undertaken research and we make no warranty as to the accuracy, completeness of reliability of this information. We recommend obtaining independent advice before you act on the content.