Long- Term Investment

Property development is a long-term investment plan, we have seen some markets crumble and some rise, but ultimately development, property investment is a long-term solution to wealth, however if your only goal is to establish wealth, you may want to reconsider your choice to become a developer.

Speaking as professionals, we often see financial feasibility being the driving force behind a fraction of clients, whom often under estimate all moving parts of the task at hand, this has led to capital loss, giving up or poor developments. A well thought-out plan is in my opinion paramount. Property Development shouldnt be looked at as a quick money making scheme.

Many property investors indeed do not adopt this mindset and are overcome with fear, which is why more than 70% of investors fail to get past their first property.

It usually takes about 12-24 months to turn over your first project. It may take up to 4 projects before you can start seeing the fruits of your labour or if you are starting from a good position. To be suited to property development you need to be prepared to commit to the process fully and decide you’re going to forge ahead no matter what happens. You’ll do whatever it takes to make it a success. This will incluede having contingency plans in place and more.. you will need an appetite for risk and be willing to embrace uncertainty, as you’ll experience both in property development. As the footballer Billy Napier once said "Scared Money Don't Make Money”

Dont be sold by slick marketing about property investment and development how they will gain a pay cheque in their pocket every month, property development is not going to be a suitable vehicle for you in the short-term. When we say short-term, we mean the time it will take you to turn over at least 2-3 development projects, depending upon where you are starting from in property development journey.

You’ll need to understand the fundamentals of property economics including new government policies, interest rates, the inflation rate, unemployment rate, population growth,

The house price index and theIt’s also crucial to understand statistics and listen for signals indicating a potential

Change in the market – these can come from the media or the property market cycle, for instance, – and again, can help developers make the most educated decisions.

To plan and execute your next development project flawlessly, you need to understand the three main phases of property development.

Pre-development - the riskiest phase of a project, accounts for only 5 to 15% of total costs.

Development - Construction in the development phase accounts for 80-90% of total project costs.

Close-out and operations - include the work post-development. It consists of marketing, leasing, and other management tasks.

The last stage of property development accounts for only 5 to 8% of project costs