When you buy or inherit the land, there are several ways to utilize it. You can build a beautiful home on it, construct a multi-family property, or sell it for profit. Constructing any structure on land involves a significant investment. Sometimes, the construction costs can be more expensive than a plot’s value. At Welsh Building Company, we offer a solution in the form of joint ventures.
A joint venture is a property development collaboration between a landowner and a building company. You own the land, and we invest the capital needed to build on it. In return, we gain an equity share of the profit you make off the fully developed property. This allows landowners to take advantage of their land’s equity and add value to it.
We first identify the value of your land and calculate how much it would cost to build a structure on it. The land is your investment, and the building costs are ours, so if a plot is around 40% of the property’s value, you get 40% of its profits. Here’s a look at a simple scenario:
This will give you a better idea of the investment and how profits may be divided. If every unit of a triplex sells for $400,000, you have a total value upon sale of $1,200,000. A client’s share of the profits is around $480,000, while the builder’s share is $720,000. You make a clear $160,000 in profit.
As you can see, this joint venture benefits both landowners and builders. Clients need to make sure they collaborate with reliable, experienced establishments for this. As a family-owned building company that has been a part of this industry for three generations, we are the right choice.
If you’re looking for reliable joint ventures, call Welsh Building Company directly on 1300 356 693 or use our contact us form.
Welsh Building Company offer a wide variety of building services to cater for almost any budget, and your dream build might be less expensive than you might think. We offer a complete service from start to finish: from the initial consultation, through to the construction phase, then handing you the keys upon completion.
Managing Director Andrew Welsh supervises every stage of your development, making sure everything runs as smoothly as possible. We can build on almost any terrain as well. For example, many of our homes have been built on steep slopes.
We Offer A Wide Range
Of Services For Any Budget
We can work out and then work within your budget
We can acquire land and build so you can just move in
if you already own a piece of land, we can build a new dwelling on it
if you already own a piece of land, we can build a new dwelling on it
We can provide commercial fit-outs for a wide range of commercial properties such as factories
We can fully renovate your existing property to the highest standard possible
We are fully licensed to build in these states.
Welsh Building provides a range of design options to revamp your home. So contact one of our building consultants to discuss your home renovation options.
