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After spending a decade building a diversified 11-property portfolio, QVS Commercial Interiors' managing director Eric Brown plans to stay on his investment journey for another "10-year play"—looking to own 10 properties unencumbered.
However, unlike many property investors, he has been thinking twice about grabbing the opportunity to develop investment properties in the future.
According to him, while he has definitely acquired confidence in the field through the years he spent in the field of building properties, property development may actually not be worth the time and money for most people.
He explained: "I've got the confidence to do that personally because of the industry I'm in, but if I was to ever speak to anyone about that, I would be really advising them against it. It takes a lot of time. It takes a lot of effort. So much can go wrong at developing. Most people look at developing something and think it's an easy way to make money but it's really not."
Eric said that there could be too many risks involved that it might be best for successful property investors to just continue on their current path instead of exploring a new one in developing properties.
If by any chance, you feel a strong pull towards property development, he recommends due diligence through self-education and good mentorship.
"You're putting so much of your money that you've worked up for so long at risk in doing a development. I would encourage anyone to look long and hard at any potential development before they jumped into that," Eric said.
For him, at the end of the day, it's all about pooling as many resources as you could and making them work to your advantage—from educational materials to a financial team.
"I would say the greatest tip I could give anyone, the thing that changed my life, was actually engaging a buyer's agent," he shared.
"I struggled at the start to get my head around spending multiple thousands of dollars on engaging someone like that but I've learned over the last 10 years that they well and truly make up the money you spend at the time of purchase by negotiating. It does add so much value to your portfolio.
"Go and speak to a couple of them. Work out one that suits you and engage them. [Accountants] also [add] so much value—you [would] know where your portfolio is in any point in time. It's not a wait and see and guess how you're going."
Tune in to Eric Brown's episode on The Smart Property Investment Show to know more about his property investment journey and the lessons he's picked up along the way.