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Why not build your own doors
Why not build your own doors
Jo Chivers
www.PropertyBloom.com.au
Why not build your own doors to open and become a property developer
Did you know that women are two and half times more likely to live in poverty in their old age than men — by 2019, on average, women will have half the amount of superannuation than men have.*
Or that Census statistics released in 2008 show that the gap between men's and women's earnings changed by less than one percent from 2006 to 2007, narrowing only slightly from 76.9 to 77.8 percent** and even in 2009 the pay gap starts from the moment women leave university, with female graduates earning on average $2,000 p/a less than male graduates***
But there are some women who are making up the shortfalls for themselves, rather than waiting for their employers to do so. These property powder puffs are not just buying houses but taking on developments without even batting an eyelid. Jo Chivers of Property Bloom™ development project managers lives on Sydney’s northern beaches. She reports a massive increase of women taking the next step into developing property, and she says “there is no better time to take advantage of current market conditions.”
Jo says “that for every male client I have three female clients. And these women are not afraid to climb out on a limb. They are developing up to four properties from one. I think in general women are in a hurry to build their property empires and we are good at multi tasking. It doesn’t mean women are rushing in, they are very astute and carry out extensive research, but they are turning to property development to boost their portfolios quickly.
Most of my female clients come back to do a second project as they can see the benefits of creating their own equity through the development process and the value of using a professional development manager to fast track the process. They are all extremely busy juggling full time work or their own business and raising children, so am I for that matter”. Jo has two young boys of her own.
Jo is featured in a new book “Property is a Girls Best Friend” which was published in September 2009. “Property is a Girl’s Best Friend” is written by women for women. “The book is really important as we are seeing that most women’s superannuation is typically half that of a man’s at retirement age. Plus 40% of women over 50 will be single through choice, divorce or death of their partner, so it’s important that we set up our futures and not rely financially on our partners” she says.
“Property is a Girl’s Best Friend” is Packed with plenty of tips and tricks to get started (and stay ahead) in the property game, this comprehensive guide is a must-have for any woman looking to secure her financial future. The readers will also receive valuable bonus material to help them move forward on investing in property.
Australia’s housing shortage is likely to get much worse before it gets any better, reports Jo because construction of new housing continues to fall well behind the number of properties required. “We are seeing Australia’s population growing rapidly. Last year it grew by more than 330,000 from overseas migration and natural birth increases. But building new dwellings has simply not kept up with the growth and we are now seeing NSW with a massive shortage of new houses.” says Chivers.
Then there is the rising demand for rental properties. Vacancy rates are averaging less than 2% across the nation’s capital cities and rental rates for houses increasing each quarter. With the rental market remaining extremely tight and interest rates low, investors are finally seeing a real increase in their property yields. It’s exciting times for property investors and for those who have clung on to their investments during the turbulent times of rising rates and low capital growth, this is the beginning of your reward time.
There is one issue with this….it is still very expensive to develop property in Sydney. Land prices, building costs, labour and developer charges are high yet block sizes are small. So Jo focuses her attention on the fast growing Hunter Region. “There are many factors that will see the Hunter Region continue to grow. The government’s 25 year plan for the region has pinpointed certain suburbs as major residential hubs, so there is significant investment in local infrastructure planned. Combined with several large employment sectors such as mining, retail, construction, manufacturing and tourism means that there is no shortage of jobs and unemployment rates are falling in the region. The cherry on the top is that it is only a two hour drive from Sydney.” Say’s Jo.
Property Bloom is both developer and project manager. Property Bloom starts by finding suitable and affordable property for clients that can be developed in the right locations where there is good demand for new dwellings.
Then through a detailed process, guides the project to a result of building anywhere from two – four new villas, more if clients can finance larger developments. The total cost of a typical development is $550,000, around the price of a two bedroom unit in Sydney.
In most cases, the projects once completed are cash flow positive*. In addition, around $80,000 - $100,000 in equity is created purely through the development process. Any capital growth over the development timeframe is additional. For an active investor, this equity can be used to buy more property. For a more conservative investor, kept as a safety buffer.
* Dependant on taxable income.
Whilst all the hard work is taken care of, clients can be as involved as they like in the process. “We have some clients that are first time investors and need their hand held through the process. Others want to learn the development process so they can do it themselves next time. At the other end of the scale there are experienced investors who work in demanding corporate roles who don’t have time to source investments for themselves, let alone develop them.”
Using a project manager to handle your development means you are handing over all the detail to someone with the experience needed to successfully manage your investment.
Some of the responsibilities of a project manager include:
· Interpret plans, estimate costs and quantities of materials needed
· Plan construction methods and procedures
· Coordinate the supply of labour and materials
· Supervise construction sites and direct site managers and subcontractors to make sure standards of building performance, quality, cost schedules and safety are maintained
· Study building contract documents and negotiate with building owners and subcontractors
· Control preparation of cost estimates and the documentation for contract bids
· Control payment to subcontractors by valuation of completed works
· Make sure that building regulations, standards and by-laws are enforced in building operations
· Consult with architects, engineers and other technical workers to make sure that design intentions are met.
Jo Chivers believes that equal opportunity is an outcome that you can create for yourself.
To learn more about Property Bloom go to www.propertybloom.com.au
Don’t, forget to mention www.Propertybooks.com.au
Or please phone (02) 9905 9955
or 0418 293 575.
*(Queensland Government (2009), “Women and Superannuation”, Focus on Women, Office for Women, Information Paper
**www.equalpayday.com.au
***GradStats 2008 www.eowa.gov.au
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