6 tips for making your first property development a success
Dipping your toes into property development for the first time can be like taking a walkabout in uncharted territory. You might bump into several hurdles, like pinning down the perfect consultants or trying to forecast the zigzag patterns of a fluctuating market. However, with a top-notch network, solid understanding and the right attitude, your initial project can be a phenomenal success. Here are six friendly tips to help you dive headfirst into the property development industry with confidence and, possibly, profitable results.
1. Learn Everything You Can About Finance
Being in the know is like owning a gold mine in the property development business. This is especially true when it comes to the financial side of things. With a maze of topics to sort through, such as negative gearing and taxes, securing loans and boosting returns, it’s vital to do your homework before diving in. Get stuck into some books, join seminars and stay tuned to credible investment blogs. If you are scratching your head over your responsibilities or rights, don’t hesitate to ask for professional advice. The financial calls you make now will shape the future triumph of your development.
2. Create a Network of Like-Minded People
Many new developers don’t quite realise how much of a workout property development can be for the brain. The journey from the first handshake to the final settlement needs a fair amount of mental grit. One trick to keep yourself sharp is surrounding yourself with people who are on the same page as you. Be it a seasoned mentor or a group with similar financial aims, having a crew in your corner will help you stay on track during the ride.
3. Know Your Local Property Market
In property development, there’s a common saying: your profit’s made when you buy, not when you sell. As you get more familiar with the real estate landscape, you’ll find it easier to spot a potential gold mine for development. Having a handle on the final development values lets you develop a feasibility study in no time and confidently buy the property you had your eye on.
4. Build a Trustworthy Team
In the world of property development, no one goes it alone. No matter your motivation, you can’t pull off top-notch development without a trustworthy team. When picking a builder, seek out someone with expertise in multi-unit development. Take a breather to check out reviews and go through their past projects. Crucially, choose a seasoned builder you gel with and can rely on, someone who’ll support you from the first development site purchase right through to the final subdivision of the site . Building solid relationships is vital in property development, so pick a builder who makes you feel at ease and boosts your confidence.
5. Set Reasonable, Clear, Attainable Goals
Before you kick off your property development adventure, it’s critical to have a crystal clear picture of what you’re after. Make sure your whole crew is on the same page too. This involves defining precise targets around deliverables, budgets and due dates. Be as detailed as possible so your building consultants can flag potential speed bumps ahead. And keep an open mind; seasoned builders are brimming with clever solutions for every problem. Pulling together lets you nip minor troubles in the bud before they balloon into big headaches.
6. Put Emphasis on Building an Asset Base
The end game of property development is to score financial freedom. To get there, you must stack up genuine wealth, not just quick wins. A well-regarded multi-unit developer can show you how to grow your assets to pump up your profits for today and tomorrow. This lets you capitalise on value growth and broaden your portfolio beyond your first purchase.
Ready to Get Into the Property Development Market in Melbourne?
Talk to our team here at Costas Constructions. We have over two decades of experience designing, planning, and building developments throughout Melbourne. We offer complete property management and development services perfect for new developers who want to keep up with Melbourne’s most experienced teams. Get in touch today and tell us about your project.