I've found many investors are looking at getting into property development to grow their wealth faster by "manufacturing" capital growth and increasing their rental returns.
While the property development process can be very rewarding, it is not without some pain and considerable risk.
When all goes well, the results are fantastic, but if things go wrong, they really go wrong.
Benefits of property development.
Some of the benefits of getting involved in property development include:
- Savings on retail price: developers often save more than 15% on the full retail price of their properties. This could be up to $250,000 on a property or over $500,000 on a duplex townhouse development.
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Strong rental income: When you become a property developer and obtain your properties at “wholesale”, you achieve strong rental returns as the tenants pay you the “retail rent”.
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Tax effective: When you complete your property development, your new dwellings will deliver significant depreciation tax benefits, meaning that you may have positive cash flow from day 1.
So let’s look at 10 Rules to help make your property development project a success.
1. Get all your ducks in a row before you start
Before starting down the path of your first (or next) development project, get your finance pre-approved, have your ownership structures set up and have the core of your team of consultants selected.
2. Understand where you are in the property cycle
As a development project often spans two or more years, understand where you sit in the property cycle and pay attention to the big-picture economic factors that will affect the real estate market.
You don’t really want to complete your project in the depths of the next property slump- do you?
3. Do careful pre-purchase due diligence
Don’t believe the selling agent when he tells you the property will make a great development site.
You need to undertake careful areas of due diligence including checking the council zoning, as well specific property due diligence - things like checking:
- the title for covenants, easements, and overlays
- the neighbourhood character as well as adjoining buildings and trees
- the topography of the site.
4. Get your budget right
Do a detailed feasibility study – be realistic rather than optimistic and include all the little costs beginners tend to forget.
Then allow a contingency in case unforeseen costs crop up, because they always will!
5. Don’t overpay
It’s important to buy your development site at a price that allows you to make a fair profit; otherwise, you’re immediately at a disadvantage.
6. Get a good team around you
Your team is likely to involve a property lawyer, accountant, finance broker, architect, real estate agent, and project manager to oversee the whole process.
And remember…if you’re the smartest person in your team, you’re in trouble.
7. Be realistic about your schedule
It's not unusual for developers to be overly optimistic with their scheduling.
Setting realistic time frames will help you budget more accurately and remember to set aside some contingency money in case unforeseen problems stretch your schedule.
8. Be meticulous with your documentation
Put everything in writing, especially when dealing with consultants and contractors.
This helps avoid misunderstandings and confusion.
And keep very clear accounts.
If your paperwork isn't in order, it'll only cause headaches further down the line.
9. Design your project with the market in mind
To maximise your profits your project must suit its target market – not necessarily your tastes.
10. Don’t become overconfident
I’ve seen many investors make substantial profits through property development, however I’ve seen even more developers, some much smarter than me, lose it all through overconfidence or undertaking just one more development before the cycle ended or a project with too little built-in profit margin.
So there you have it
A list of some of the lessons I’ve learned after being involved in managing hundreds of property development projects for clients of Metropole over the last 15 years.
Hopefully, these rules will help steer you on the path of property development success so you won’t run into many potholes.
Want to get started in property development?
Now, it’s your turn.
On October 5th in Melbourne, we’re hosting the Ultimate Property Development Workshop, a one-day, high-impact event designed specifically for investors like you who want to take their investment game to the next level.
Whether you’ve been thinking about dipping your toes into development or you're ready to dive in, this workshop will equip you with the knowledge and confidence to succeed.
Here’s what you’ll gain:
- Proven Strategies: Learn the exact methods successful Australian developers use to find, assess, and profit from property development opportunities.
- Expert Insights: Our seasoned faculty, including Brett Warren, Greg Hankinson, and Lachlan Mirams, will share their real-world experiences and actionable advice—no fluff, just the facts that work.
- Hands-On Guidance: Understand the development process from start to finish, including site selection, finance, feasibility studies, and risk mitigation.
- Networking Opportunities: Connect with like-minded investors and industry experts who share your ambition and drive.
This isn’t a “sales seminar” —it’s a training to fast track to transforming your investment strategy.
Ready to step up?
Visit our website here to see exactly what’s instore.
You’ll find in-depth information about the agenda, speaker bios, testimonials from past attendees, and all the reasons why this workshop is a must-attend.
Or just click here now and secure your spot today and receive our detailed A to Z manual of Property Development.
By the way… we’ve been running this workshop since 2004 and previous delegates have stepped up their game and made substantial profits as developers.
Seats are genuinely limited – we’ve chosen to make it a small group environment on purpose, and we’d hate for you to miss out on this opportunity.
Click here to register now and start your journey to becoming a successful property developer.
