7 Tips for an easy property development

Nobody said property development had to be hard. It may be a bit daunting if you’ve not done it before, but there are ways you can make it as easy as possible.

Here are our top tips:

1. Location, location, location: Property hot spots can be a good guide as to what areas might be on the rise, but there’s plenty of other potential in the market that you can tap into. Your local real estate agent will be able to give you invaluable insights if you’re planning to develop in your own back yard, for example, while a specialist property development company can help you access and interpret data relating to the potential of another suburb or block of land you have your eye on. It’s this sort of ‘insider information’ that will help you clearly identify your target market and design a development to suit.

2. Finance first: Discuss finance early on so you can get a good idea of what your project might cost and whether you can borrow the money to make it happen. A comprehensive feasibility study will model different options so you can see upfront what the likely costs are, as well as the expected return on your investment.

3. Budget: Set a budget and stick to it. Not only will you be confident that everything’s covered from the outset, which means less chance of nasty surprises along the way, but also you won’t be chipping away at your profit margin by overspending.

4. Be realistic: Property development isn’t for the feint-hearted. There may well be a few bumps along the way but surrounding yourself with the right team means you have experts on hand to deal with any issues that do crop up. The right team includes experts on everything from real estate and tax matters, to R-Codes and residential construction. Better still, consider working with a specialist property development company that’s already assembled the team for you.

5. Set your expectations: A feasibility report will set you on the right path, with a clearly reasoned plan of action, including an assessment of whether selling or holding your new properties might be the best option.

6. Be systematic: Following a well-worn path will help you minimise your costs and maximise your profits. There’s no need to re-invent the wheel. By adopting a systematic approach and following the advice of the experts, your property development project should proceed smoothly and efficiently.

7. Head not heart: View your property development as a business venture. The idea is to make money, so think with your head and leave the emotion at the door, especially when it comes to decisions about design and specification.

Talk to Developments by Dale Alcock on 9242 9500.