Firstly we need to remember that nothing is achieved without effort and sacrifice. You must have belief, persistence, perseverance and you need to take a long term view.
Property development is one of the most rewarding things to do in real estate investing.
Interest rates are down. Optimism is up. People are considering capitalising on market conditions and either developing, or investing in the property market.
Development is a long term strategy, even though we live in a world of instant gratification with quick fix and get rich quick schemes, with property development slow and steady is the key.
Whether you are considering taking on a complex renovation, a splitter, a subdivision or developing master communities.
Developers are the coordinators of these activities and really orchestrate the process from the inception to the end.
- Are great negotiators – have good listening skills, communication skills, and above all are good negotiators helping you to reach the best price and terms for the purchase of the land or property. Your profit depends on how much you purchase it for.
- Are team players – leading the team with understanding and communication, getting the best results from the team.
- Are great with coordination and organization – property development is all about managing people and processes. Having good project management skills will definitely be one of your biggest assets.
- Have great time management – time management is crucial for every project, we all know that time is money. You must be organised, proactive and on top of what is happening at all times.
- Are problem solvers – life doesn’t always go perfectly to plan and property development is no exception. Solving problems will rely knowledge and experience. Sometimes you won’t have the answer so you need to build a strong team around you.
- Have the financial skills needed to create the detailed financial model necessary for development, ensuring you make a profit. Most developments encounter unforeseen problems which cost money, so you have to ensure from the start that there is enough profit in the deal.
Development can be perceived as high risk activity however financial institutions today have stringent financial models to ensure that help to minimise their risk.