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Now’s a good time to create wealth

November 6, 2010

The West Australian

Whether it’s a home behind a home on a subdivided block, a free-standing house to rent or sell for profit, or a multi-dwelling project to consolidate wealth, there are plenty of opportunities for astute investors in the new homes market in WA. Mums and dads with plenty of equity in the family home are prime candidates for creating wealth by building an investment home or units that they can either sell for potential profit or rent out for long-term capital growth. Mining industry workers looking to spend some of their hard-earned cash could also benefit from investing in duplex, triplex or multi-unit developments which provide a place to live between stints on site, extra income through sales or renting and possible tax benefits. Building an investment project can also provide future security for young singles or couples with minimal monthly outlays who want to find a way to make their money work for them. Some WA building companies — catering exclusively for the investor and developer market — have the know-how and experience to maximise the potential of strata, infill or single building sites and appeal to a broad range of potential buyers or tenants. DALE ALCOCK Dale Alcock Developments caters for three main types of clients: owner-occupiers who will ultimately live in one of the dwellings they build; investors who build and hold to rent; and developers who build to sell. The company was established in 1993 to specialise in strata developments, which are generally more complex than normal green-title construction, and it builds a range of projects from single strata homes to multi-unit configurations. “The most popular areas for development projects are generally within a 20km radius of the CBD where there is clearly a demand for higher-density living,” Dale Alcock said. “We have been focusing on urban infill to meet the demands of living within 20km of the CBD. “We have launched a series of standard plans for battleaxe blocks and released a guaranteed project completion time initiative, which will help clients planning their developments and provide peace of mind that their development will be ready on time.” Experienced in-house designers with extensive knowledge of R Codes and individual shire requirements have created designs to achieve optimum yield for each site and ensure a smooth planning process. Mr Alcock said that infill sites could be problematic, particularly when dealing with antiquated residential codes, so design outcomes were critical to the success of the development. “It is also essential that the builder is cognisant of the fact that care is taken during construction to minimise the impact on neighbours,” he said. “Retaining walls and fencing are always sensitive issues and Dale Alcock Developments takes a proactive stance to confer directly with neighbours to assist the customer.” The global financial crisis had some impact on the way financial institutions scrutinised residential development projects. “For customers who have owned their block for several years, equity has allowed them to develop their site without too many financial issues,” he said. Pindan Belmont-based property and construction company Pindan is firmly entrenched in creating opportunities for property investors. Director of business development Scott Davison said that the diversified property group considered investors when planning developments and regularly opted for multi-unit projects with unique attributes. “When we undertake develop- ments, we are also the investor so we search for the same qualities individual investors look for — great locations in suburbs with above average growth; stand-out features such as water views; and proximity to schools, shops, transport hubs and other lifestyle facilities,” Mr Davison said. “Our attention to detail in site selection and our expertise in design and construction allows us to be more efficient and produce stand-out projects.” This combination of factors meant that, while the average investor was more cautious during the recent economic downturn, the company was still able to attract savvy investors. In turn, those investors recognised that the downturn was part of a cycle which would not affect their long-term investment. “Overall, the investor market is returning to normal in Perth, with a rise in interest across the board, more investor activity in new home construction and demand for our transportable housing on the up, in line with the booming resources sector,” he said. Pindan developments include C’Air Estate in Hillarys, Aqueous luxury apartments at Mandurah Quay and Waters Edge private estate in Viveash. Pindan’s Switch Homes for Living worked with investors across WA to build quality homes for Perth’s rental market and owner-occupiers, and Switch Invest provided turnkey investment opportunities “with all the trimmings”. “Pindan also has a transportable accommodation company — Formas — which offers housing solutions popular with investors, particularly in regional areas,” said Mr Davison. The company’s development management division guides clients through their own projects, using the group’s practical experience in the WA market to achieve success

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