Creation Homes

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Creation Homes
Click to view in Digital Magazine
Creation Homes
Click to view in Digital Magazine

Creation Homes Builds Successful Business Model

Creation Homes
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Creation Homes has set new standards in the development industry with a highly actionable business model. The model in question can churn out high-quality, 6-star rated designer homes in an extremely efficient timeline. Their approach of full turnkey solutions and outsourced quality assurance inspections has quickly launched the company and spread its zone of influence. It also does not hurt that a high-powered selection of Australia’s most experienced developers stands behind them. The end results are highly appealing, full-featured homes led to market by industry recognized customer service. Indeed, the managers at Creation Homes find themselves in an exciting time in the company’s short history and rapid rise. For them it is a time of rapid growth and increasing market influence.

A subsidiary of parent company Metro Property Development, Creation Homes is the house building arm of the larger developer – both companies share a Chairman in industry legend David Devine. Creation Homes is not Metro’s only successful extension, either. Another of their businesses, Urban Villages, is industry leading and provides services to medium density developments in both Victoria and Queensland. Urban Villages is a joint venture with Oliver Hume Real Estate and MPS Architects, and provides design, planning, sales and marketing, and the built form all in one service offering.

As its own sub brand, however, Creation Homes have already established an identity of their own in just over one year of existence. With extremely capable management and a gift for quickly erecting high value, quality homes, their business model is certainly a unique one. They can efficiently develop single homes and town-homes designed to comfortably house clients while maximising investor return. “One of the key things we do is we provide full turnkey products,” says Executive Director, Sean Lefoe. At times a home owner has to cap certain areas of the build themselves, once they purchase the home. Certain details such as landscaping, fencing, light fixtures, window coverings – the list can be endless. What turnkey solutions means – for the uninitiated – is a home that is completely finished and ready to be lived in by home buyers. “Basically, we sell you the house and as the buyer you don’t need to do anything else to start living in the home. Everything is looked after right down to the numbers on the lemon box,” Lefoe says. For potential tenants that are weary of moving into a semi-complete home, this is certainly good news. Also, since so many builders have fallen into the habit of incomplete sells, this can be a competitive selling point and a major market enhancement tool.

One particular incentive for eager buyers, and interested investors, is Creation Homes’ rapid building rate. “Our build times for small and medium sized homes can range between 14 and 16 weeks, which is market leading,” he says. By having an effective core team of specialists in place led by well-seasoned managers, these efficiently fast build times have had a profound effect on investor returns. This process can maintain a consistent product flow and keeps investor capital working – all while enacting a system of increasing investor return. This is certainly an effective way to grow a company, and it sheds light on their rapidly growing foot print in the market.

So what exactly are Creation Homes buyers receiving? In our post-modern, environmentally conscious world the issue du jour is sustainability. Creation Homes consistently delivers 6-star energy rated homes, with carefully crafted energy standards. Creation Homes has made a successful effort to surpass minimum expectations. This certainly makes for a more comfortable overall living environment and is a sure-fire element in the reduction of carbon into the atmosphere. The 6-star rating is not just another selling point but also an effective way to cut monthly expenses for tenants due to soaring oil and gas prices.

Another element of the extremely high turn-over on these newly built homes is the high level of style and sophistication that buyers receive. Each unit has many of the features that modern buyers are looking for and with the extremely affordable price tag it is safe to suggest that buyers are receiving value. In the post Global Financial Crisis world, the economic climate still urges many buyers to spend conservatively and the kind of value present in the Creation Home projects is very appealing. “Everyone is looking for value, we understand that need and aim to deliver according to market demand,” Lefoe says.

Holding to this business model, with strategic partners in tow, they have effectively and successfully completed many projects across Melbourne and have begun projects in Brisbane as well. They have productively planned, designed, then effectively marketed and sold products in their core market of medium and low density housing. They have even put the same rapid and highly professional turnkey business model to use on a project as large as 160 dwellings, which they are building for well known public company Australand. This has given Creation Homes a solid and growing reputation in the industry as well as with the buyer market. “We have fixed prices and full turnkey, and we avoid any gimmicks and tricks that some other builders use. Sometimes buyers believe they are getting a good deal on a home until they realize there are some side costs added in,” Lefoe says. “Our clients know that what they see is what they get.” This is surely the key reason behind the dependable reputation and will propel the company in the years to come.

Given their rapid growth as a company, the actionable business model and the long line of satisfied home owners behind them, Creation Homes can look forward to some exciting times. With plans to consolidate their business in urban Melbourne, expand into New South Wales and Queensland and instil a 7-star energy rating into their builds, expansion seems to be on the horizon. Just look at how much they have contributed so far – within 18 months of operation, Metro Property Development has in excess of $1.2 billion worth of work in the pipeline, which includes Creation Homes future work. Also, in year two, Creation Homes alone will turnover $30 million. “We have a really good product, at a really competitive price which ultimately means value for the consumers, and from my experience that is what ninety-five percent of consumer are looking for,” Lefoe says. Based on the results Creation Homes has presented so far, one would be hard pressed to disagree.