What property development project types do you need to know? Mr. Billion Dollar Property Developer Bob Andersen discusses.

Usually new developers start off with residential developments. Some may later move into commercial, industrial, or retail developments.

Let’s discuss some of the types of residential developments you could undertake starting from the simplest. To be clear, I don’t consider buying a block of land and building a house on it to be a property development.

SPLITTER

A splitter is simply subdividing one lot into two or sometimes three lots. Sometimes you might hear the term splitter and slider. A slider is when you move a house on the same block of land to make room for a second block.

SUBDIVISION

Although a splitter is a subdivision of land it generally relates to one or two lots. Subdivisions of course can be any size and are a great way to introduce you to property development.

DUPLEX

A duplex is simply to dwellings usually joined together but not necessarily. They are sometimes called semi-detached. A dual occupancy, though technically not a duplex, is similar in that it is a separate building although sometimes joined, on the one block of land.

TOWNHOUSES

Townhouses are dwellings which are usually attached and typically more than two although there is no necessity for them to be attached. On completion they are usually subdivided onto separate titles vertically.

APARTMENTS

Apartments, units, condos, call what you like but they are dwellings not only attached on the sides but also one on top of another. On completion they are usually subdivided onto separate titles both vertically and horizontally.

SPECIALISED RESIDENTIAL

One example would be holiday units. I tend to avoid these because they are typically tied to the tourism market which is quite fickle to can be very hot and cold.

Retirement product could also be considered specialised residential. Some small projects can be targeted towards retirees, but retirement villages are usually the domain of developers with deep pockets. That said, they are a specialty of mine, and are one of the most highly profitable types of projects you will ever do.

STUDENT ACCOMMODATION

Another type is student accommodation where the dwellings are rented to students either wholly or room by room. Proximity to education institutions is important and these can often be good investments to hold as the rental yield is generally higher than standard residential dwellings.

WHICH TYPE OF PROPERTY DEVELOPMENT PROJECT TO START OFF

Most of my students start off with small projects because of limited capital although students who adopt some of my creative strategies may well commence with larger projects.

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