There is nothing stopping driven people from becoming a developer right now. It would be wise to take action whilst in lockdown aiming to ride the wave as Melbourne opens up.
There is no need for courses or certificates; to be a successful developer you just need a mix of 1. motivation, 2. knowledge and 3. either equity or finance.
Motivation
It is important to understand your aims before proceeding to how or what to develop:
- Are you wanting to create a portfolio of property acquired at wholesale prices?
Enjoying extra high rental yields. - Are you keen to simply make high profits?
Simply banking the money. - Do you have a property that you wish to develop?
Escalate the value of your existing equity. - Are you wanting to create a dream home for a fraction of its value?
Purchase and create your dream at a massive discount enjoying all the benefits this option offers. - Is it a mix of some of the above? Your dream home plus either bonus money or equity?
Have your cake & eat it. - Do you want to change careers?
Become a developer full time.
Knowledge
You don’t need to know every aspect of the development game. You just need to consult the right experts and allow them to ply their trade to your advantage. It is wise to utilise the experience of successful developers & their consultants rather than try and “invent the wheel” yourself. There are too many pitfalls and the stakes are too high for you to get that costly learning experience yourself.
Ideally, FIRST TIME you keep your day job and develop as a secondary means of creating wealth.
This dramatically lowers your risk and can be achieved easily if you employ the right consultants to focus on the mundane everyday issues whilst you continue to earn income in the background.
Beginners shouldn’t be expected to make every right decision, often they won’t even know that there needs to be a decision made let alone navigate it correctly. This is where the experts should offer value as a helpful, trustworthy guide through the complicated process.
Equity or Finance
This comes back to the question; do you have a property you wish to develop or do you wish to invest in a profitable development?
Unfortunately, without at least one of these two, it will be hard for you to develop.
The good news is, you only need one although ideally both equity & finance are accessible.
We have often helped clients who have a good property but cannot access finance. Our Cheltenham Joint Venture, Murrumbeena Unit Development & Murrumbeena Joint Venture are examples where we helped clients realise their dreams without the finances to normally do so.
Alternatively, our Property Investment Melbourne Services are aimed to help those with the intention of buying to make extremely astute choices that will pay off well beyond normal expectations. Our Fairfield project is one example of how we helped novice property developers profit massively whilst their focus remained on “their day job”.
With over 30 years as Melbourne’s house design & development experts House Design Solutions has access to “off-market” property and valuable insight into profitability that you can utilise to your benefit.
Post-Lockdown Property Development
Post-Lockdown Melbourne market conditions offer a whole range of challenges as well as great opportunities for the astute investor/developer to profit handsomely. It is a very good time to reap high yields from the right type of property development if you are clever about your approach. To succeed, any development must start with the correct strategy but just as importantly it must also be executed in the right manner.
The execution depends on why & what you are developing as each individual proposition is completely different and requires astute navigation through to a successful completion. Development is quite difficult and you will need more help than you think. It is impossible to explain each applicable strategy here but House Design Solutions offer expert advice tailored to your particular needs. 30 years of experience has told us that the best results come from good guidance that allows the client to remain in control as the developer but with our expert direction and network of consultants.
Will there be a higher demand for homes in Melbourne post-lockdown? If so, then NOW is the time to prepare to ride that wave!
Unit Development as a Means of Escalating Your Investment
It is very important for aspiring property developers to understanding what Unit Development actually is.
Conventional property investing, unlike unit development, is buying a house and waiting for the market to drive its price up, and then selling the same property for a profit. The question here is… Has the property gone up or has the purchasing power of the dollar gone down? We question “speculative investing” as a money-making concept as not only is it at the mercy of market fluctuations but once flipped you will find it harder to buy the next one, as that too has risen.
Conversely, Property Development is buying a property and escalating its value by transforming it into multiple properties: you are breaking the original asset into smaller assets which in theory add up to a higher value. Of course, the value of those multiple properties will still be affected by the market but it is akin to buying a site wholesale and creating a number of retail properties that can each be “packaged” and sold off. In this case “packaging” is usually building a home on it. Most “non-builder developers” do not profit from this “packaging” so, for them, construction is a necessary “cost” of developing.
To summarise, given the above, property development is aquiring land wholesale, dividing & packaging it and presenting it retail. This is property development “in a nutshell” and worth always remembering.
So How Do I Begin?
The question of where to begin will depend on your motivation (aims) and what you possess. Is it equity or finance or both?
If you already own property and wish to develop it refer to our advice on Property Development & Joint Venture or you can contact us for free initial advice on how best to utilise it to your particular advantage.
If you are looking at investing in a property with the aim of dramatically escalating its value then refer to our advice on Property Investment Melbourne and make sure you do your homework. Buying “off-market” is ideal as it gives you the chance to adequately analyse your prospective purchase which should, in theory, be priced lower.
With 30 years as Melbourne’s house design and development experts, House Design Solutions can consult with you on your particular situation and guide you through a successful development like YOU have been doing this your whole life!
Visit our testimonial pages to view how others have benefitted from our guidance.
