Guest Article – The Micro Developer Model

 

Micro Developer Model predicted to pique Property Buyer Interest

As published in The Q Review Spring 2020 Magazine.  Follow the link to Subscribe and receive your FREE copy each quarter!

COVID-19 related uncertainty, high rental demand and low interest rates are predicted to make micro development a key property trend.

Perth-based Zegna Building has launched a new micro development arm, releasing its first project using the model in Innaloo.

A registered builder since 1991, Robert Zupanovich created Zegna in 2013 after working for builders as a site supervisor and project manager building high-rise apartments for ten years.

“The days of being able to buy an established property in Perth and see it automatically double in price every seven to 10 years have deserted us of late, so finding ways to get into the market where you can create equity at the start, not the end of the process, is vital,” said Zegna founder Mr Zupanovich.

“While many people can’t afford to undertake an entire project themselves, they can still become a micro developer and reap the rewards of apartment development with very little financial outlay and low risk while also generating equity swiftly.

In micro developments, individuals join together to build a small project – constructed and project managed by Zegna – where, typically, each investor develops one apartment.

…low interest rates are predicted to make micro development a key property trend.

The group shares the cost of purchasing the land and individuals are named on the land title of their own slice of the property and security.

Some of the funds provided initially are returned at the end of the project and individuals can sell, rent or live in their apartment.

“With our bespoke Botanica development of nine executive residences in the heart of Innaloo, the average micro developer generated 15-18 percent equity in 18 months and equity is key to property ownership in the post COVID-19 age,” said Mr Zupanovich.

“With this model, you can build equity faster by being the developer of your own apartment rather than hand that money to the developer if you buy an established property.

“Each buyer only had to put down for their portion of the land and set up costs to get into the project.

“With all-time-low interest rates, keeping that amount of money in the bank is not going to get you the same return as micro developing.”

Each buyer only had to put down for their portion of the land and set up costs…

Botanica, at 3 Dongara St, is tucked behind Innaloo shopping centre offering great facilities, good freeway access and proximity to the city and ocean.

“As with all good developments, micro developments are all about picking the right locations,” Mr Zupanovich explained.

With a great area, good planning and a builder with a solid history of self-property development, micro developing is an ideal way to get into property cost effectively as a owner occupier or investor, or for parents to help their kids get into the market.

Mr Zupanovich is keen to hear from CapitalQ Community Members who are interested in building wealth and lifestyle through property, so please call 0412 088 812 to discuss your options, or you can learn more about Zegna Building at www.zegna.net.au.