6 tips for making your first property development a success
If you’re considering getting started in property development, you won’t be surprised to hear that the first development is the hardest. You’re likely to encounter many challenges – from finding the right consultants to work with, to predicting trends in an ever-changing market. However, with the right network, knowledge and mindset, it is possible to make your first project a wild success. Here are 5 tips for making a smooth (and lucrative) leap into the property development business.
- Educate yourself on all things finance
In property development, knowledge is power. Particularly when it comes to finance. With so many topics to navigate – like negative gearing and taxes, borrowing funds and maximising returns – it’s critical to educate yourself before you begin. Read books, attend seminars and follow reputable investment blogs. If you’re unsure of your rights or obligations, seek professional advice. The financial decisions you make today will influence the future success of your development.
- Surround yourself with like-minded people
Many new developers underestimate how consuming property development can be. The process from pre-acquisition to settlement requires mental stamina. One way to stay on top of your game is to surround yourself with like-minded people. Whether it’s an experienced mentor, or a group of people who share similar financial goals, a support network will keep you focused throughout the journey.
- Knowing the property market
There is a saying in property development – you always make your money in the purchase. The more you get to know the property market, the easier it becomes to recognise a viable development site. Knowing the end development values helps you to put together a feasibility quickly and purchase with confidence.
- Build a team you can trust
No property developer is an island. Regardless of how driven you are, you can’t build a great development without a great team. When choosing a builder, look for a multi-unit development expert. Take the time to read reviews and browse project portfolios. Most importantly, choose an experienced builder you like and trust – one that can help you with all aspects of development and support you from the initial land purchase right through to project completion. Relationships are everything in property development, so choose a builder who makes you feel comfortable and fills you with confidence.
- Set clear, realistic goals
Before you embark on a property development project, you should have a clear vision in mind. You should also ensure that everyone on your team is on the same page. That means setting clear goals around deliverables, budgets and deadlines. Be specific, so your building consultants can advise of any possible obstacles. Also, be open to new ideas. Experienced builders will have solutions to all sorts of challenges. By working together, you can prevent small issues from becoming big ones.
- Focus on building an asset base
The ultimate goal of property development is to obtain financial freedom. To do this, you need to accumulate true wealth, not just fast returns. A reputable multi-unit developer can guide you on how to build your asset base to maximise profits – both now and in the future. This will allow you to leverage capital growth and expand your portfolio beyond your first project.
Thinking of getting started in property development in Melbourne?
Talk to Costas Constructions. We’ve planned, designed and built award-winning developments in Melbourne for over 20 years. Our complete property development and project management services are perfect for new developers who want to work with Melbourne’s best.
Get in touch today. We’d love to hear about your project.