4 essential elements that can make or break a property development
Property developers come from all backgrounds and walks of life. Many share certain traits, such as resilience, drive and dedication. However, to create a truly successful development, you need more than a great work ethic and a vision – especially in the competitive Melbourne market. Here, we cover the top 4 factors that determine the success of a property development. Get these right and you’re well on your way to financial freedom.
- The right site at the right price
As a developer, your aim should be to buy a site below market price. To find the perfect site, you need to know where to look. You also need see potential that others may not immediately see. By familiarising yourself with property markets and economics in general, you’ll be better placed to predict trends over the life of your project. Most developments have life span of 1 to 4 years.
- A trustworthy team with a shared vision
It takes a team to build a successful property development. If everyone in your team is on the same page, your chances of success skyrocket. When hiring consultants and builders, look for people with expert knowledge in multi-unit development. Make sure they understand your goals and share your vision. Most of all, choose people that communicate well and give you confidence. Nothing sinks a project faster that poor communication.
For more tips, read our post: Choosing the right builder for your property development.
- A clear timeframe and budget
Property developers are visionaries. They see the big picture. However, the best developers are also meticulous planners. For your property development to be successful, you must know your numbers and stick to them. What’s your budget? What’s your timeframe? What’s your contingency plan? What’s your exit strategy? The more precise your plan, the greater your chances of success.
- Knowledge of the local market
The success of your development will depend largely on how well you know the local market. That means understanding the current needs of buyers and anticipating how these may change in the future. For example, if your site is located close to a university, there may be a demand for student apartments. However, if your development is in a growing suburb, townhouses may be more sought after. Know how much similar properties have sold for in the area – and remember to consider local council laws and development codes.
Give yourself the best chance of success
Great property developments don’t happen by accident. They require a solid plan, a clear process and, most importantly, the right people. At Costas Constructions, we’ve planned, designed and built property developments in Melbourne for over 20 years. We understand the unique opportunities and how to maximise value for the local market. We also have strong connections with local councils and town planners.
Get in touch to talk to us about your property development project.