Tues 17th Nov – What You Must Know BEFORE Taking On A Property Development!

It seems like everywhere you look around Melbourne, you see some kind of property development activity.

Many investors get swept up in the hype – thinking that a subdivision or property development will make a profit regardless of the size of the land or the locality.

But the reality is that it’s very easy to make a loss on a property development deal if you don’t know what you’re doing. Surprisingly, even sites that already have approved plans and permits are often unprofitable!

We’ve all seen ads on websites like realestate.com.au promoting properties with development “potential”. Many novice developers investors rush to buy these sites, convinced that if they don’t act quickly they’ll miss out on an opportunity. They HOPE everything will be ok and are excited about cutting their teeth on their first property development. Unfortunately, far too many novices discover only after they’ve spent more money on architects and other consultants that their deal will not make the profit they hoped for… or may even lose money. This is when reality hits and panic follows.

In order to avoid getting into such a risky position, any investor really needs to understand the numbers in the deal BEFORE making such an important and expensive purchase. Essential questions that MUST be answered ahead of time include:
  • What can realistically be built on the site?
  • What expert advice will be needed and how much will it cost?
  • How much will it cost and how long will it be before getting Development Approval?
  • What can you do if your application gets rejected?
  • What are the risks in the deal?
  • Is there enough profit in the deal – especially if things don’t go according to plan?

So if you have a passion for property development but struggle to find the time to:
  • Determine if a site is suitable for development
  • Gather the relevant costs involved in the project
  • Build the right team on the ground
  • Analyse the feasibility and potential profitability of the deal
…then you cannot afford to miss out this meeting!

We’ll be joined by a very special guest – Scott Buckner.  Scott is a registered Commercial and Domestic Builder with a Science Degree in Construction. Scott’s projects include;

  • Commonwealth Games Village Housing package with Village Park Builders;
  • The fit-out of over 20 venues in the lead up to the Games;
  • Many hundreds of apartments around Melbourne;
  • Building hundreds of his own homes around inner-city Melbourne as a property developer;
  • Building in collaboration with Mega Homes hundreds of medium density sites around Melbourne.

Scott truly enjoys troubleshooting; searching for more efficient ways of completing projects by working with the project’s engineers and architects to deliver these outcomes.

Scott will talk to us about how he works with property development clients to:

  • Perform project feasibilities before purchase based on what is practical for the site;
  • Investigate design options – looking at what the market demands in an area plus highest and best yields;
  • Undertake project risk assessment considering demand, construction costs and credit hurdles;
  • Work with engineers to evaluate engineering decisions for both efficiency and cost;
  • Look at the deal from an end-to-end perspective… from design, planning, right up to construction.

Make sure you bring a pen and paper as you’ll want to take plenty of notes!

There is plenty of parking and remember, you are always welcome to bring along friends or relatives who are interested in property investing – it is all about networking with like-minded people!

Location The Veneto Club. 191 Bulleen Rd, Bulleen (Just off the Eastern Fwy)
Map Click here for map
Date 17/11/2015
Time 6:30 for 7pm start

Leave a Comment