Have you found yourself wondering how to get into property development young? Well, wonder no further because that’s exactly what we’ll discuss in this article.
Property development, if done right (and there’s a few tricks to this, which we’ll discuss), can result in huge profits.
There’s a reason you see so many older homes being knocked down. You’ll often see townhouses pop up afterwards.
Townhouse development is lucrative if you have your head screwed on the right way.
Property developers can make serious money by developing real estate.
If you’re in your twenties and wondering about how to get ahead in life – then you may want to consider learning how to develop property.
Now, property development is not something you usually associate with young people. You probably think of middle-aged men in smart suits and shiny shoes.
But there’s no reason that a twenty-something can’t get their foot in the door in the property development game.
If you follow the below tips, keep a cool head, and arm yourself with knowledge, anything is possible.
There’s a saying we like at Little Fish – knowledge is power, but it’s also money.
So, if you’re young and want to learn about how to get into property development, continue reading.
Have a Learning Mindset
This is probably the most important tip of them all. You need to have an open mind and be a sponge. Sponges soak up liquid; it’s what they do. You want to soak up knowledge about property development.
Even gun property developers know they can always learn new things. Yes, you can teach an old dog new tricks, but if you’re a young pup, then it’s the perfect time to learn.
So, set your mindset to learning. Ask lots of questions. Always be open to new ideas.
If you have a closed mind, there’s no flexibility. It can be impossible to graft new ideas onto closed minds.
A learning mindset is one of the most important things to develop if you want to get into property development. Without one, you are better off not trying at all.
Volunteer for Unpaid Internships or Work Experience
A great way to get a foot in the door of this industry is to gain work experience. As a young person, it can be challenging to land a job with a property development company without some prior experience and knowledge.
But if you’re just starting out on your journey, you won’t have any actual work experience in the sector.
So, this is when you should put on your biggest smile, extend your hand, and pound the pavement.
Reach out to development companies. Offer to work as an unpaid intern or volunteer for work experience. Bring the boss a coffee in the morning – that’s always appreciated.
Now, you’ll probably get knocked back a bit. This is fine. Property developers are busy, and not everyone will have the time to train up an intern.
But some bosses will accept an internship or work experience placement.
Once you have a foot in the door, apply that learning mindset. Follow everything they do closely. Take copious notes. Ask questions, and don’t be afraid of seeming silly. Remember, property developers are always open to learning.
The knowledge you’ll gain this way is as valuable as if you were getting paid for your work. It could set you up for life.
Study and Take Courses – Paid or Free
Now, you could go to a tertiary institution and study real estate development. There are a variety of undergraduate property courses and certificates, and diplomas.
These are valuable endeavours, and during your studies, you can make some lifelong connections that you can leverage in the future. Networks are super essential tools of the property developer.
However, you do not need a formal qualification to become a property developer. It can help, as any qualification can, but real-life experience and learned knowledge will trump formal study every time.
Free courses and online guides are just as valuable as a formal degree.
Take my YouTube channel for example. It has a goldmine of free tips and tutorials that are super informative and useful.
And the best thing about the channel is that it is free. You can spend a week or two watching it and learn most things that you need to know about property development.
You can also check out the Urban Development Institute of Australia or UDIA.
UDIA is the peak body for Australian property developers. They have a wealth of knowledge, including education resources and masterclasses.
It is well worth checking them out and doing some courses through them. Remember that saying – knowledge is power, but it’s also money.
Hone Your Skills
The next step is to hone the necessary skills required to become a property developer. The good thing about this is that these skills are transferable to any area of life, so by building them, you are investing in yourself and your future.
Even if you have a crack at property development and decide it’s not for you long term, the skills you’ve gained will be invaluable in your future endeavours.
Let’s unpack some of the skills needed.
Patience and Discipline
This game is not about easy and quick money. Try the pokies or risky investments such as cryptocurrency if you want to get rich quickly. Jokes aside, we’re dead set serious about this – you’ll need discipline and patience to succeed in property development.
A site may look like the goods at first, but upon further inspection and due diligence, it can turn out to be a dud.
Conversely, a site that looks crap might be a diamond in the rough.
And then, even once you’ve found that goldmine site, it may not come on the market for ages. You’ll need the patience to wait for it to go up for sale.
In addition to epic patience, discipline is vital. You want to remain detached, calm and collected when developing property. This is important for several reasons.
The first is that if you become emotionally attached to a project, a site or other aspects, you can lose your objective head. Remaining detached is the name of the game.
Furthermore, disputes, delays and other hiccups happen all the time in property development. If you rush in hot-headed, you can say and do things you’ll later regret and things that can impact your bottom line. And remember, the bottom line is why we’re perusing this line of work.
So, develop those skills now that will serve you long into the future.
Project Management Skills
A master property developer is a project management gun.
Managing a successful project is a big task requiring the oversight of many moving parts. It means keeping multiple stakeholders on track, on time and working together.
If a property development fails, often it’s because the development management side of things was seriously lacking.
So, this is a skill that you want to develop. You may study formally or take on other projects to develop the skills.
You may have experience managing events or other projects in your life. If not, you want to gain this experience as soon as possible to get into property development young.
This is where the above internship or work experience tip is essential. If you get this authentic experience by shadowing a project manager, you can apply it in your own life.
Now, let’s explore some other tips for twenty-year-olds looking to get into property development.
Build Your Credit Rating
Unless you have wealthy parents or you’ve inherited a sizeable sum of money, you’ll need to finance your property development project.
We don’t have the time to go into it here, but here’s a helpful resource.
Obtaining finance is difficult if you have a low or no credit rating.
A credit rating is what financial institutions use to determine your capacity to pay back a loan. They will often reject loan applications from people with lower credit ratings.
One way to build your credit rating is by obtaining credit and paying it back on time.
So, you may want to take out a credit card and use it to pay for all your expenses and then pay it back regularly and on time from your income from work.
Be careful not to overspend because late payments are recorded on your credit files, and defaults can be disastrous if you wish to obtain credit.
So, don’t go nuts, but just use it for your regular expenses. Regular repayments will build your credit file.
Another thing to do is avoid multiple enquiries in a short amount of time. For instance, if you apply for two credit cards and a personal loan within a few months, it will look bad to lenders.
Even if you don’t develop property in the end, building a credit rating is vital for life in general. Utility providers, telcos, and banks all look at your credit rating, so if you want to buy a house and set up utilities, you’ll need a decent one.
Learn About Zones and Overlays
Another tip is to keep learning – are you surprised? Hopefully not by now, considering our first tip in this article.
Zones are how certain areas are set up for construction and built there. For instance, there may be some houses in an industrial zone, but these can’t be developed or even renovated in most cases as the zoning doesn’t allow it.
You’ll want to develop in residential zones, but these can vary depending on the density requirements, heritage status and more.
So, you guessed it, get studying. Learn all you can about zones, and overlays too, while you’re at it.
In this helpful article, we’ve shared eight tips on how to get into property development young. If you’re 20 something and reading this, you’re already well ahead of the pack. While your mates are out boozing and blowing money, you’re developing a learning mindset.
By getting ahead of the pack young, you could be setting yourself up for life.
Follow these tips and remember the most important one is developing and honing that learning mindset. Never stop asking questions, researching, and learning. Everything else will come with time, experience, and patience.
If you are motivated to develop but think you need help, reach out to our consultant team here at Little Fish – we’d love to help. Call 1300 799 277