New to property development? Here’s what you need to know
The world of property development is an exciting one. As property developers, we have the rare opportunity to see the bare bones of a potential property development and watch it turn into something amazing. Though property development is an attractive area to get into, especially when you have the potential to make massive profits, you must understand a few key areas before you make your start.
Before we get into what you need to know, you should first understand what direction you intend to take with property development. There are two main areas:
- You can make money selling after you have developed or constructed the property
- You can generate long-term profits from rental income
Once you’ve clarified your goal and interests, then you can focus on what you need to know in the world of property development.
4 Key Understandings for New Property Developers in Sydney
1 – Skills of successful developers
It’s important to know early in your career what makes a good property developer. This way, you’ll know if you have what it takes to be successful in the field and what you should work on. Here are some of the skills required for property developers.
- Business-oriented – Property development is a business and it helps to keep that in mind daily. A business-oriented person makes decisions that are best for the project, the business and increase profit margins.
- Leader – There are a lot of moving parts associated with property development. You work with different teams and companies through different processes. A successful property developer will lead all involved teams to a successful final project.
- Cooperative – With teams, comes teamwork. It’s important that you know how to lead and cooperate with different teams and players.
- Patient – Property development can span months and even years. A successful developer knows how to be patient and let the process play out rather than rush processes and decisions.
For a more in-depth look at the attributes of a successful property developer then check out our article on the attributes of a successful property developer.
2 -The market
The property market in Sydney is a complex and multifaceted one, complete with tiny suburb markets studded across the city. There are several drivers for property around the world and it is vital that you know what they are and monitor them for future change. Here are some of the drivers of property in Australian suburbs.
- Population growth
- Employment type and rate
3 – Knowledge of the development process
The property development process is the life of this industry. A proper understanding of each step is key in executing proper planning and execution of the project. It helps to have the basics of this covered as it will help you in any future property development job. Here’s a brief overview of the process.
- Concept design
- Permits and approvals
- Pre-sales and marketing
4 – Factoring time, cost and quality into every decision
In property development time is money. A proper understanding of how to weigh the speed of a project against quality and the eventual cost of the project is vital in being successful for yourself and your company. Critical and forward thinking aid in these decisions but so does acceptance. Acceptance that not every project can achieve minimum time and expense and maximum quality. You then have to learn how to deal with this with regards to your client, company and project. As simple as it sounds, navigating this relationship and viewing every decision through this lens will create a business-oriented mindset and set you up for success.
Every member of our team at Cite Group has a clear understanding of these areas and expert knowledge of the property markets in different suburbs of Sydney. Our goal is to ensure that you get the profits you deserve through a seamless process.
We focus on the development of new residential buildings. Through our conservative risk assessment program, our team will capitalise on investment and guarantee a smooth outcome, as proven in our pool of successfully completed projects. Learn more about joint venture opportunities at email@example.com. Keep up to date with us as we share more property news and insights.