What to consider when deciding if you should become a property developer?

In order to be successful at property development; you have to crawl before you walk. Most mistakes are made with the first few projects you undertake, so it’s best to learn from these without having to risk your life savings.

Ambition is a crucial asset for any property developer, as is the ability to think big, but over-confidence can be your worst enemy.

So, remember to start out small and learn about the development process with a few initial projects that won’t make or break your entire investment career.     

Property development is an extremely creative process; therefore, property developers must be creators by nature.

As a developer, your role is to take a project from the conception of an idea, right through all the stages of design and approval, financing, construction and marketing and eventually the leasing or sale of the project.

Successful property developers are a bit like movie producers. They assemble a highly talented team of people and skillfully lead them to develop a profitable outcome.

Developers need to be proactive and make things happen. They must also be creative, flexible and adaptive to take their project through the development maze, not to mention all of the bureaucratic red tape that’s involved with council applications, zoning restrictions and the like.

As a developer, you need to work hard, have patience, remain focused, and have a burning determination to succeed. There are a few key basics you are going to have to undertake as you move along the path towards becoming a successful developer. You must:

·       Educate yourself

·       Take your time

·       Do the research

Developers are investors who commit their equity, expertise and talents to convert land from its current use to a higher and better use. They require a good understanding of the town planning and construction process and marketing of real estate projects.

The developer carries the financial risks of the project but stands to reap the rewards if it is a success. In other words, the buck literally stops with you - the developer.

To become a successful property developer, you need to be a good coordinator, because you must assemble a team of talented people and proficiently lead them to deliver a profitable outcome.

Developers are more than just property traders who buy low and sell high; they are knowledgeable in their field, have good negotiation and people skills and understand how to optimize profits while managing risks.

As a developer, it is your responsibility to make sure the risk you are taking on is equal to the potential reward at the end. That is, the higher the risk, the greater reward you should aim to achieve.

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This article via Your Investment Property does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.