Skills Needed for Property Development Success – 5 Non-Negotiables
Are you looking to generate some serious wealth?
In times gone by regular Australians were limited to investing in shares or accumulating rental properties in order to generate a decent level of passive income.
If you play your cards right and develop some skills, you can see high levels of return on investment.
Some of these skills are absolutely essential, in fact they’re non-negotiable.
In this useful article we’re going to share 5 non-negotiable skills needed for property development success.
Ready to get cracking?
1. Next Level Patience and Discipline
Property development isn’t a quick earn. If you want quick money try the casino!
Just kidding, don’t do that, but we’re serious about needing some next level patience. You’ll need to learn everything you can about residential property development. No pain, no gain as they say.
Identifying the perfect site in order to maximise your sales is a big learning curve. Some lots may look perfect at first glance but once you do some digging, they’re actually duds. And some sites you’d never consider may actually be hidden gems!
And, once you’ve found the right sight you need to wait until it comes on the market for the right asking price. This takes time so you need some epic patience.
Discipline is also vital, because you need to learn from the Buddhists and practice some detachment. You’ll find it is easy to get emotionally attached to your projects or sites and when hiccups happen you can get frustrated.
If you maintain a good level of detachment, you’re much better equipped to handle delays and disputes. Also, you don’t want the dreaded FOMO to creep in and negatively impact your decisions.
So – patience to wait for the right opportunity and discipline to keep a level head and not act on impulse.
For example, some people get heated during an auction and overpay for a site or wind up buying a sub-par site. You need to be able to walk away when your ducks aren’t in a row.
2. Project Management Experience
Some level of experience in managing projects will help a lot.
Even if it isn’t residential real estate development you need to understand some of the basic principles of project management.
The stakes are way too high for a residential development project to be your first maiden voyage. You might have experience in managing projects at work, or perhaps you’ve project managed a major renovation. This experience will help but you can always ask an expert.
Some companies, like Little Fish, take the stress out of the process and you can let them and their property development team do the heavy lifting.
They’ll keep you posted every step of the way, so you stay informed and learn the development process along the journey. This way you can learn the skills needed for property development success.
3. Genuine Passion for Property
Having a genuine passion for property is invaluable. If you have absolutely no idea about the property market you should probably do a serious amount of research before you decide to invest in a development opportunity.
The stakes in this game are way too way to just have a fleeting understanding. If you don’t know enough and you go looking for a site, you are bound to make a rookie error that could end up disastrous for you.
So, do yourself a favour and develop a serious passion for property.
You need to get a genuine feel for how much certain sites sell for and for how much units or townhomes are selling for in your chosen area. Knowing what the other property developers are doing and what buyers are looking for also helps.
Having high level, detailed property market information in your target area is a fundamental skill. You’re either going to have a passion for this work or you won’t. If you don’t but you’re interested in the profits, we strongly recommend talking to experts.
At Little Fish we live and breathe this stuff every day of the working week. We can help identify the right site to develop for you. We can also project manage the development from start to finish.
Another service we offer is our residential property development consultants service – if you are looking for help with your own project make sure you check it out.
4. Planning Regulation Knowledge
You need a strong finger on the pulse when it comes to the planning process and residential codes.
A savvy developer knows the various regulations and requirements relevant to different types of property.
For example, multi-storey dwellings are subject to different approvals and often come with more complications. Also, different local governments will vary in how you approach them so having knowledge of this is a vital skill.
Click here to learn more about the Victorian planning and subdivision regulations.
5. Planning Process Knowledge is Essential
You’ll need to have some kind of understanding of the entire residential development process from start to finish. Time is money as the saying goes. This saying is especially true when it comes to development.
Every single day has a dollar amount attached to it, and usually a high amount. Losing days while you try and figure out the next steps is a high risk and super expensive situation to be in.
It could even mean the difference between a successful profitable project and a serious loss.
Side note, if you are keen to kick of your own development be sure to check out these common pitfalls of rookie developers. Well worth your time.
Want to Know More?
These five skills needed for property development success aren’t all you’ll need but are some fundamental non-negotiables.
If you don’t have the time or desire to master these skills that’s fine – that’s why Little Fish is ready to help.
We can do the heavy lifting and mitigate the majority of the risk. That way you can enjoy the ride and start building your wealth!