Success in property development, like in all wealth-creation strategies, requires passion and dedication, thorough research, and the help of reliable property professionals.
Many investors are attracted to the glamour of developing properties, but those who have actually delved into the industry know that it is not for the faint-hearted.
According to Smart Property Investment’s Phil Tarrant: “It’s not easy. If you want to go into development ... go in with your eyes open [and] expect to go through a pretty serious learning curve.”
Fortunately, there are companies and professionals who specialise in this strategy. Apart from the financial team that you have formed as a property investor, there are other professionals who can help you get through several development projects successfully.
“[Having a] team of people [will] give me the best chance of … acquiring a block of land that I can develop … [maximise] the assets I can put on that, and … [have] some sort of realistic financial outcome that is beneficial to me,” Phil said.
White Gorilla Developments’ Neal Ashworth lists the most important professionals that you need in your development team:
Before anything else, you have to determine that you have the financial capacity to develop a property.
Neal said: “That [should be] in your plan—where [can] you ... pull funds from? Then, [determine] what structure to set it up in, what's best suited to you and your conditions. Then, you're all set.”
Financial planners can also help you establish the right price for securing the block of land.
When you have the dollar and you have determined a site to look into, as well as your ideal timeline from purchase to build, a project manager can help you get reliable professionals on board.
“I get the consultants on board, [including] architects, surveyors, [and] everyone [who will] take that process through,” according to Neal.
Project managers also set up spreadsheets and charts to help you organise your plans—from your feasibility study to the overall build plan.
Neal recommends getting an architect as you start looking for a block to purchase.
The property professional said: “I'll pick the architect saying, ‘I'm thinking of buying this’ [and we’ll] double-check what you can put on it. He'll give me a quick once-over of ‘I think you can do this. Here's your designing tent.’ ”
It’s important that your architect is familiar with the area you’re investing in so he can help you design dwellings that will comply with the policies implemented by the local council.
“They should know how wide it needs to be, how deep it needs to be, what the height restrictions are, [and] what zoning it is,” Phil said.
Architects who know people from the council who will approve your development application will also be beneficial to your journey.
Tune in to Neal Ashworth’s episode on The Smart Property Investment Show to know more about the step-by-step process of getting the best chance of maximising cash flow and how to excel in the property development industry.