We love properties with a ‘development twist’
A twist being the potential to add value to a property by some means other than just improvement by renovating.
We regularly buy properties with ‘land or development upside’ for our buy and hold clients at our Buyers’ Agency.
The main development twists we buy include:
* Subdivision
* Zoning for multiple dwellings
* Space and zoning for a Granny Flat
* Commercial upside, potential change of use
* Blocks of flats/units
Every now and then you can buy a gem.
Such as the following example::
A standard house purchased for our client on a corner block of land.
Owner occupiers can prefer houses to be away from a corner for privacy reasons.
For an investor they can be of particular interest as the increased frontage of the property may allow for additional development options.
A somewhat standard investment house for a buy and hold investor… Looks entirely normal… except…..
The back yard can be sold off without having to move the existing house. Which is a great option to have.
There are caveats, and exceptions, and qualifiers, as always with real estate. Also the numbers matter a great deal, if you are paying a premium for ‘potential’ then that may change matters entirely. However if you can buy ‘potential’ without paying a premium then it’s often a great way to position yourself to out perform with capital growth.
