Luxury Homes as Development Strategy by Kate Gawi
We tend to think about property development as apartment and townhouse developments, more often than not linked to multi units. There is, however, another way making good profits and no, I am not talking about renovation and flipping properties by giving them a makeover. I am talking about my greatest passion – BULLDOZE AND BUILD BIG, BOLD and BEAUTIFUL.
My personal favourite projects have always been the upmarket homes; the architecturally designed luxury homes in prime locations with worthwhile profits. In the single, residential dwelling is where my heart is.
What I have noticed in the fields of property development is that sometimes less is more. The big rewards can be made with smaller risk by following two golden rules: The right location and the right design. Pair these two rules with the B’s: BULLDOZE AND BUILD BIG, BOLD and BEAUTIFUL, and that is my favourite recipe for success.
The Importance of right location
Properties in prime locations will always sell better than properties in secondary locations. When the market is slowing down, the prime locations will still do better than the properties with a lower price tag. The land value on its own will give greater rewards in terms of appreciation in a blue chip location.
Whilst I don’t disregard renovations as a way of making profits, I am in favour of a brand new design. One of the main reasons for me is that properties built in the seventies and eighties have their limitations even with a good renovation. Unless there is any heritage value in the house, I would not favour a renovation. With many older properties in great locations a dated layout is an issue. Start fresh, start new and design for a new generation in mind. The next step is to determine whether to go classic or modern. At Architeria Architects we do both. While the classical designs are timeless, the modern, clean line homes are becoming increasingly more popular. The choices are endless and we always advise our clients of the construction cost of any design options.
Grand Homes – Grand Returns
We have all seen the mansions of Toorak, Canterbury and the likes as well as the wonderful acre properties in Wonga Park, Park Orchards, Lower Plenty, Warrandyte and Templestowe. This is where I would look in to investing. . Current annual land appreciation is within the 10-12% in these areas and demand for high end grand homes still high.
One of the greatest and most fun ways to make profit is to find that lush, large piece of land in the Eastern Suburbs that touch the green wedge. These low density areas have some of Melbourne’s greatest acreage whilst still being in a close proximity to the city. Look for that run down old brick house and that is where I would use my “B rules”: bulldoze, build big, bold and beautiful. Creating grand homes with good amount of bedrooms, great living areas and garage spaces, pool with a landscaped acre will generate fantastic returns. Value will be added by that cellar, the cinema room, his and her walk in robes and a tennis court. The quickest way of generating development returns is of course to find land that does not require planning. For larger blocks in low density residential areas or rural areas planning permit is often required as many of these properties are under overlays. We have seen a trend with our developer clients who started to add luxury mansion developments to their portfolios and noticed an increasing interest in single dwelling developments of a grander scale.
Architect Designed Homes
An architecturally designed home speaks for itself. There is no doubt that a meticulously designed grand home will have an equally grand dollar sign to it. Mass production is mass production but an individual, unique home is a creation. The amount of details and thoughts that we put in to these homes both internally as well as externally is priceless. The flow of the layout, the orientation, the colour scheme, the finishes and fixtures, the right angles and mouldings, all of these will have to read together, speak and tell a story. My excitement never fades for each time we start a new project as there is nothing more satisfying than seeing the final product – that majestic building in all its glory.
For your next luxury home, whether it is your own house or investment – call our professional and friendly team at Architeria Architects – your luxury home designers on 03 9894 5805.