Property Development

An Introduction to Property Development

Australian's love property, we have one of the highest rates of property ownership in the world with residential property being an easy and popular route for experienced and beginner investors.  Often however when it comes to Property Development investors tend to shy away as there are many traps that can end up turning a dream investment into a nightmare.

Before deciding on whether property development is right for you there are a number of things you should consider, as without the right mindset and team of professionals working with you, the chances of failure are much higher.

If you may have already decided you want to become a property developer you should be able to relate to the following statements and agree with most of them.

  • I am willing to face the challenges of Property Development
  • I have the necessary entreprenerial skills
  • I am prepared to take calculated risks
  • I have a keen interest in property as a medium to long-term investment plan
  • I enjoy negotiating and making deals
  • I have leadership and managerial skills
  • I am creative and a lateral thinker

If you agree with these statements, you are already on your way to becoming a property developer.

There are a number of different types of property developments, and some will suit experienced developers more than beginners with each of the options having different risk, financing, experience and saleability profiles.  There are 6 key types of property development you can consider;

  • Renovations
  • Single Home
  • Units (including duplexes)
  • Apartments
  • Land
  • Accommodation

With each of these development types you really need to consider what your short-term and long-term goals are and if your chosen development will suit these goals.

Once you have decided on the type of property development you interested in you then have to work through a few key areas and make sure you get them right.

Some of the key areas you need to look into include;

  • Selecting the right site
  • Discussing and arranging the correct type of financing
  • Establishing a an experienced team
  • Working with contractors, consultants and solicitors
  • Costing and monitoring your development

To get you started it is important to research and equip yourself with the right knowledge, Ron Forlee is an Archietect and Author based in Perth, Western Australia,  Forlee has completed over 300 developments. His two books, Australian Property Development and An Intelligent Guide to Australian Property Development would have to be Australia's best books on Property Development in Australia.   They are easy to read and also comprehensive in their information and provide a step by step approach to help you get started and help you on your way to becoming a successful Property Developer.