SSKB Developer Consultancy service is about getting it right from the start.
We understand the complexities of property development. Our industry leading, highly qualified and experienced team of professionals is here to guide you through each stage of your development. Property developers know it’s critical to work with an experienced strata management team from the beginning of any building project. Every detail matters.
We have put together a Top 10 Development Mistakes list to ensure you don’t fall into these common traps.
Top 10 Development Mistakes
- Fear of “difficult” deals
A savvy developer will acquire the skills to handle tough deals and the market will pay a premium to those who do. If it was easy, everyone would be doing it.
- Overlooking the Option of Townhouses
Most developers are focused on building apartments. With the influx of apartments being built in Australian cities competition is high. Townhouses still allow occupants to live close to the CBD’s whilst being an alternative option to apartments.
- Lack of Design Savvy
Potential buyers are becoming more aware with what is a good design and what is not. It is important to invest in a good design from the start.
- Not Partnering
It is important to know your strengths and weaknesses. It is likely that you will not obtain all of the relevant skills to complete every aspect of a job, find a partner who has the skills that you require.
- Misunderstanding the Market
Marketability for a particular project can vary hugely from suburb to suburb. A concept that works in South Brisbane may not work in West End. It is important to take the time to research to ensure that the site and its demographics is truly understood.
- Fear of Broadening Your Reach
You do not have to be a commercial developer to develop property with a commercial component. If you find a site that could benefit from residential and commercial uses however you are a residential developer, the commercial piece can be sold.
- Moving too Slowly
Often, you miss out on a deal simply because your competition was faster than you. Ensure that your team understands the importance of being first.
- Being too Reasonable
Some of the most successful developers are unreasonable. They have expectations for success that can be considered unreasonable. These people are not satisfied with what is available on the market. They can achieve so much more by having the confidence to ask.
- Failing to Establish a Solid Lender Relationship for Residential Projects
Residential buyers need easy access to attractive financing. Developers who do not research and believe that they can leave this to the market often find themselves playing catch-up.
- Too Much Focus on Acquisition Cost, Not Enough on Density
Extra density can save a project that you overpaid for, consider getting creative in your design. Adding just one additional commercial space to mixed use project may turn your project into a winning one.
Above are 10 mistakes that give a broad understanding of common mistakes made by developers. It is important to conduct suitable planning and understand the processes involved in property development.
SSKB’s developer consultants work with developers from the start the ensure they get it right from the beginning. Click here to see how we can assist you today.