Win at Property Development in Adelaide

Developing in Adelaide is something many feel is ‘easy money’. In practice it’s anything but easy and often inexperienced developers lose money due to unexpected issues. We deal with Adelaide, international and interstate based property developers on a daily basis and see first hand when things go well and things go bad. Here are a few tips if you are looking to start your property development journey in Adelaide to maximise your success!

Don’t Bite Off More Than You Can Chew

Many jump into the development game with big ideas and dollar signs in their eyes, thinking the bigger the project the bigger the profit. Whilst that can be the case, it often goes poorly for first time or inexperienced developers who don’t have a full grasp of the risks that can quickly turn a profit to a loss. Finding a project which aligns with your timelines and budgets is integral to increasing the chance of a positive result and lower the risk of a project going over time or cost. Starting small also ensures you can learn the process and fully understand what is happening at all times with your project before slowly building towards bigger and better things as you get more comfortable.

Build a Great Team of Professionals

Having a great team of professionals is perhaps the most important thing in development and will help you achieve the best possible results. You will need to surround yourself with high level financial, planning, conveyancing, land division, real estate and building consultants. Many developers opt to cheap out on consultants which can be a recipe for disaster. Issues which could have been identified early by the proper team are often lurking and don’t affect your project until it is too late to turn back. Ensuring all of your consultants understand the project and your goals will help them to push you towards greater success and avoid unforeseen issues.

Do Your Research

It is amazing how often developers do huge amounts of planning for their project but fail to do one simple task. Market research! It is integral to understand the product you are trying to develop and your target market to ensure the best possible result. For example there is no point developing three higher density dwellings when two premium lower density dwellings are more desirable and will result in a higher end profit. More houses are not necessarily the best option! By understanding what the market wants, and what similar dwellings are selling for before committing to your project you will better understand the likely end results of your project.

Stay Flexible

Pushing the boundaries is OK, but you shouldn’t be reliant on it. You can come unstuck in a big way if the numbers only work if your fifty-fifty proposal is accepted by Council. You need to fully understand the options for your site should you require a back up plan and how this affects the success of your project. Your team of consultants can help you evaluate the potential risks of pushing the boundaries and likelihood of success. They can also help you understand other options that can be put in place should plan A be knocked back and how this affects your bottom line.

To follow along and find out more about planning issues, hear client stories or learn more about the development process make sure to follow any of our social media channels to stay updated. We are waiting for your call for assistance on any project requiring a planning and development consultant.