Managing your outcomes with your townhouse development.
At Lowe Design & Build, we understand that landowners play a vital role in shaping the outcome of each project. With the support of our expert team, landowners can remain in control and achieve outcomes that are tailored to their lifestyle and financial needs.
Understanding that all landowners have different objectives, this article explores the three most common scenarios. For some landowner’s, it may be a combination of all three.
- Profit Generation
- Cost Neutral
- Dream Home
Profit Generation
These landowner’s seek to unlock equity and generate profit. They may have financial goals such as reducing their mortgage or saving for retirement. In such cases, maximizing the value of the sale property becomes a crucial factor to achieve a profitable outcome. As a licensed Real Estate Agency with a sound understanding of buyer profiles and trends, our sales team’s guidance is invaluable here.
Client 1: Emma lived in an old brick veneer home, which was now too big for her, since her kids had all moved out. She wanted to unlock equity in her land for travel and to prepare for retirement. Now in her 60s, Emma was not in a position to take on a construction loan, hence, selling Pre Construction to fund her build provided the perfect solution.
By designing and selling a 4-bedroom townhouse on a slightly larger parcel of land, the sale price exceeded the development costs. This allowed her to generate enough profit to bring forward her retirement plans. In addition to this, the 3-bedroom townhouse she retained was designed to perfectly suit her lifestyle and needs, and is worth more than the value of her old brick home.
Cost Neutral
These landowner’s objectives are to achieve a brand-new townhouse which perfectly suits their needs, without affecting their current financial situation. For these projects, our team will assist with managing the delicate balance between project costs and the anticipated townhouse sale price.
Client 2: Claire and Peter are in their 70’s and were living in a rundown home in the location they love. The property was difficult to maintain and too costly to renovate. They decided to develop their land and retain one townhouse for themselves and sell the other. Our team custom designed two townhouses, each with 3-bedrooms on similar parcels of land.
The overall project costs and the townhouse sale price were balanced, allowing for a cost neutral outcome. Claire and Peter’s new home now suits their needs (complete with a ground floor master suite), lifestyle, and is worth more than the original rundown home.
‘Dream Home’ Focus
For these landowners, the priority lies in creating their ‘Dream Home’. They need a cost-effective solution which allows them to design a luxury home, catering to the specific needs of their family. The emphasis is on fulfilling their personal aspirations and enhancing their lifestyle.
Client 3: Mark and Anna were nearing 40 with a growing family. They love the street they are in, but it was a small house on a large block of land. They had specific requirements and explored the option of building a single home but were concerned about the financial burden that comes with this approach. After further exploration, they discovered they could achieve all their objectives through a custom designed townhouse development.
Mark and Anna designed their ‘Dream Home’, which included 38 sq of living on the larger parcel of land, equipped with all the features they had dreamt of. They sold the smaller townhouse on the remaining parcel of land, which contributed to 80% of their project costs.
In Summary
While the above examples provide an overview of three typical scenarios, there have been many landowners who generated profits while retaining the larger of the two townhouses – this can be influenced by desirable locations and market cycles. As tempting as it may be to strive for the best of all worlds, realistic comprises in any development may be necessary to achieve desired outcomes. It’s always important to strike the balance between your townhouse and the sale townhouse, while considering aspirations and practical considerations.
Additionally, consider the transition from an old, tired and consuming property to a new townhouse which offers an improved low maintenance lifestyle, increased asset value and functional spaces which perfectly carter to your needs.
Along with the guidance of a highly experience team, establishing clear objectives is the key to a successful project, as it can greatly influence the design and its execution. Lowe Design & Build have supported over 100 satisfied landowners achieve their goals with our Pre Construction model. Will you be the next to join them?
Book a complimentary and obligation free site assessment, and let’s start looking at the possibilities together!
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Please Note | The information provided is general in nature and your personal financial situation is unique. Any information and advice obtained through this article may not be appropriate for your situation. We would recommend seeking financial advice before proceeding.
