10

CRITICAL THINGS
TO KNOW ABOUT
PROPERTY DEVELOPING

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1

Do your research! There is an endless amount of information online.

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2

Select the right Builder! One that knows Property Development, Perth market, actively develops their own properties and is aware of all the pitfalls of developing.

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3

Make sure you allow for ALL of the costs! You can fool yourself into thinking you are making a good margin by not including hidden costs in your feasibilities such as Government charges, GST, Marketing or Settlement costs.

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4

Choose the right Location! Buying land in the right suburb, near transport, shopping centres, schools and parks can mean greater demand for your finished stock.

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5

Buy land at the right price! Paying too much at the start of the project can result in an end product that is not attractive to purchasers, which in turn means a long selling period at the end or heavy discounting to clear units.

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6

Ensure your Builder gives you a full Turn-Key fixed price construction cost. Many Builders will give you an attractive upfront cost that excludes many important items. This leaves you exposed to unknown costs blowing your budget.

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7

Find out who will be supervising your development. Project Supervisors in charge of your project should have development experience.

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8

How will you fund your project? Deal with a Builder / who has strong financing partners and relationships with major Banks, who is willing to help you put your project funding in place.

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9

How will you sell the Units? Deal with a builder who has the ability to pre-sell your units prior to development or who has good relationships with selling agents and twill market the units during construction.

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10

When will your project be completed? Make sure you have a timeline from your Builder detailing when the construction will start and estimated completion date. The sooner you finish the first project the sooner you can move on to the next one.