Property Development and Investment

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The start and finish of the property development process are each relatively complex but form a good starting point for describing the process of property development in Perth. The start of the Property Development Perth can be any idea by anybody of a valid or invalid, perceived need for building user space. This puts the beginning of a property development in Perth into the context of the creation of a new idea or thought or opportunity by one or more human beings.

Alternatively, the start could be as nebulous as someone, e.g. a professional, considering that a commercial or industrial sub market, whether their own or not, may have a need for user space or even that someone else may have the inclination to finance a venture in real estate carried out by another. Put simply, the start of the property development process is the potential opportunity of profit for someone.

The finish of a property development process in Perth, with or without the original stimulator or executor, is when an end product building exists and provides a recognizable stream of benefits, usually rent, to the party owning it. It could be considered ideal that the developer moves the project through a set of phases/activities from whatever is its start (above) to the existence of the benefit producing asset which has a capital value (above or below the costs of its provision).

For the developer the timing of this finish of property development in Perth could be the same point in calendar time of the duration expressed in the feasibility study and which matches the peak phase of demand for that type of user space in the current market place, the building is rented up to the void level expressed in the feasibility study and the whole property development in Perth is about to be bought by an investor and the price agreed approximately matches the sale appraisal in the feasibility study. The finish of the development process should not be confused with the most propitious point in time in the process for the developer to sell the development to another party. These are two different things.

When it comes to the process of making a Property Investment Perth and exiting from it, there are a few things that you must keep in mind. When you buy or sell property, there are many transaction costs associated with the property investment activities in Perth. You might have to pay a brokerage fee to the intermediary. If you have made a gain on the sale, there will also likely be a resulting capital gains tax liability.

You will also face some expenses related to the stamp duty at the time of the transfer and registration costs of the property. All these costs can add a material amount to the purchase or sale price of your property investment in Perth. Unlike stocks that you can sell readily and convert into money in the hand within a couple of days, buying and selling property takes time. Your ability to convert your property investment in Perth into cash in hand is quite restricted. It is not uncommon for deals to take up to one year, and still fall through at the last minute.

So if you feel that you can sell your property to pay for your child's education abroad once he/she gets admission, you might be in for a shock. To have easy access to this money, you might be better off putting it into a financial asset that you can access at a short notice. Property investments in Perth are not always the cleanest when it comes to cash versus cheque component of paying for deals. Unlike mutual funds where KYC (know your client) norms require that the investment be made in cheque and the PAN card details be shared, real estate investments can have a huge cash component to them. This might not suit everyone.

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