What is it that separates truly successful property developers from the rest of the pack? As one of Perth’s leading property development experts, we’ve worked with our fair share of developers and know what it takes to make it in the industry.
One thing that defines a successful developer is the ability to avoid costly mistakes that can ruin the viability of a project. To help your development succeed, we’ve put together a list of 5 common property mistakes so that you can benefit from our experience and avoid them from the get-go.
Size Isn’t Everything
Don’t assume that more land automatically means more houses and a bigger profit. There’s no point in paying a premium for a huge parcel of land when the local council won’t allow the kind of development you have in mind.
Do your homework and make sure that you’re able to build the development that will generate the biggest return. This can involve reading local council development plans, communicating with the council and even possibly engaging a town planner.
Don’t Get Ahead Of Yourself
Biting off more than you can chew is a classic mistake amongst newcomers to the property development game. Bigger developments do mean bigger returns, but they also need more experience and carry a bigger risk.
Don’t jump in the deep end for your first project. Making errors on smaller property developments while you learn the ropes is far less detrimental than doing so on a large-scale developments. You’ll be much more likely to be able to financially recover from the former as opposed to the latter.
Know Your Target Audience
Once again, not doing your homework in this area is a huge mistake. In order to get the best return possible, you have to know your target audience and pursue developments that are going to appeal to them.
For example, you don’t want to build lots of smaller, high density dwellings in an area where people want large houses with a front and back yard. Similarly, don’t put expensive fixtures and fittings (like granite benchtops and high end appliances) into developments targeting first home buyers who won’t be able to afford them.
At the end of the day your developments are only worth what someone is prepared to pay for them, so do your research and make sure you’ll be building homes to appeal to the local demographic.
Have A Contingency Plan
Like life in general, things rarely go 100% according to plan. Unforeseen events like tradies running behind schedule or delays due to bad weather can quickly derail a project if you haven’t allowed for contingency in your budget.
The mindset to adopt is one where you always plan for the worst-case scenario. This way you’ll be prepared for potential speed bumps you may encounter along the way.
At Developments by Impressions, we use our years of industry leading know-how to help you avoid mistakes like these. We can assist you to make the kind of choices that can lead to the maximum return possible. Get in touch today to find out more.