Innovative construction methods to deliver projects ahead of schedule, and within budget.

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Chris shares his top three ways developers can save money on multi-level projects.

1. Early Consideration Of Basement Construction

Basements can be the one of the main sources of unnecessary spending for developers, particularly for multi-residential and retail developments. Small issues or changes lead to either increased excavation costs or design costs going through the roof.

We often see basements being over-utilised or under-utilised. They’re either designed right to the boundary without allowing enough space for the structure to be built, or the space isn’t maximised, forcing developers to add a second basement.

Early engagement of a structural engineer, particularly before Development Approval submission can save time and money, particularly on multi-residential and retail developments.

If you can reduce the number of required basement levels on a development, on average you can save $500k per level.

The key is to effectively plan space early in the design process, and ensure…

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What does it mean by ‘returns of over $163,000 per year’? Is this rental yield or capital appreciation?

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“The $163,000 per year is rental return only and they divide that $163,000 by 9 units that would equal the rent that is available from each unit of x divided by 52 weeks a year that much for a week which is your 350 or 3 55 week capital appreciation anticipated for the next 3 years in Brisbane would be 10% per annum

Capital appreciation could exceed $300,000 per year based on current trends of potential 10% growth per year in Brisbane over the next 3 years that is on top of the rental return of 163000 per year plus any increases with the marketplace growth”.  Brisbane – Suburbs with 5%Plus Yield

September Property Snapshot Infographic

While the headline rate of growth remains positive across most cities, the majority of capital cities have seen their growth trend moderate compared with a year ago. The only capital city markets where…

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A yield is only based on income, whereas a return includes capital gains

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What return will the property will give YOU, Property Investor – in other words, its yield.

Before starting to look seriously at a property, most investors work out the yield on the property to see if it makes their shortlist. Although some investors buy property for other reasons – landbanking, infrastructure potential or lifestyle reasons – most are only concerned with its current return and potential yield.

Before we get into the complexities around yields and how to work these out, it’s helpful to understand the different terms.

Investment terms explained

Yield – A yield is a measurement of future income on an investment. It is generally calculated annually as a percentage, based on the asset’s (or investment’s) cost or market value. It has nothing to do with a capital gain on a property.

Gross yield – If you think about your ‘gross earnings’, then you are on the right…

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Brisbane (up 3.0 per cent) What are the implications for interest rates and investors?

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Home prices

• Home prices: The CoreLogic Home Value Index of capital city home prices rose by 1.0 per cent in September to stand 7.1 per cent higher over the year. Prices rose in all capital cities except Perth and Darwin. But regional prices were only up 1.4 per cent in the year to August (latest data).

What does it all mean?

It is clear that there is no single housing market. Housing prices are responding to the different population or demand influences as well as the different stages of the building cycle. Demand for homes in Sydney and Melbourne is supported by solid population growth while supply hasn’t caught up. Not yet, anyway – the process is underway. In contrast the increased supply of new homes in Perth is happening at a time of softening population growth. There have always been different cycles across the country and this time is…

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