Development projects that require little investment
Investing in development is a great way to create passive income, but having the capital to start can be very difficult. Getting started in property development is just that: an investment. Taking that first step is hard without a lot of disposable income. Here are some high return-on-investment projects that can help jumpstart your property development journey!
Property Development First Steps
While we will get to specific types of projects, here are some general things you should consider before investing in the land.
Existing infrastructure. Infrastructure already in place when you buy a property can save so much money as long as the property works for you! Reach out to us for help in this area.
Location. Consider if a property is in a good location for any project you want to build. If you’re thinking about basketball courts, for example, an area near a school may be ideal.
Demographics. Consider what you are building and if the people in the vicinity would actually use it.
Having the right team. Ensure that you know who you would need to help you bring your project to life. Add this cost into your budget and meet with them early in the project to discuss a timeline or their expertise.
Investing in sports fields can be an excellent way to make money, but there is a relatively high upfront cost. For example, it costs approximately CAD 47,000 to build an outdoor basketball court or approximately CAD 21,000 to build a tennis court on top of the land you need. While the investment may seem like a lot, there is little you need to do to maintain it, and there are plenty of ways to capitalize on the investment.
Compared to other options, parking lots can be quite a low upfront cost. Depending on the condition of the lot you buy, you may need to pave and paint the lot, but the majority of the cost could come from how you choose to charge entrance fees. You have the option to hire someone to monitor the lot or get a machine that will collect fees. The machine may cost more upfront but will save you money in the long term.
Storage facilities are a relatively large upfront investment, but they are long-lasting and require a relatively low budget for upkeep. A self-storage facility can be a relatively low-cost project as they are kit builds, but it is recommended that you secure 2.5-5 acres to build on. A self-storage facility makes approximately $30,000 - $5,000,000 annually in Canada, and each facility is a part of that valuation.
Simple dog parks require a good-sized plot of land, preferably one that is undeveloped. These require little investment; landscaping, fencing, and amenities like water fountains and dog waste stations. This may be an ongoing investment, however, with continued landscaping and management needed. This cost may vary with one estimate ranging from $35,000 – $175,500 CAD. This cost can be made back by charging fees for entry, offering membership programs, and holding community events that cost money to enter.
Still want to discuss entry-level investing? Visit https://www.regalwayhomes.com/bookings-checkout/real-estate-investment to book a consultation with an investment agent to learn more about your options!