From prosolution.com.au: Property development can be a lucrative investment method, as demonstrated by a case study where a client achieved a 14.8% annual internal rate of return (IRR) over 20 years after transforming a $540,000 property into lucrative townhouses.

However, rising land and construction costs, coupled with potentially lower capital growth in outer suburbs, present challenges for new developers.

When comparing investment options, it is crucial to analyse both IRR and the amount of capital contributed, as higher ongoing costs might lead to more wealth accumulation in traditional buy-and-hold strategies.