High stakes, high pressure and big dreams; property development is a risky venture that rewards the ambitious and daring. A fluctuating market, construction setbacks, licensing issues and budgeting shortfalls all threaten to derail you, sending you into a downward spiral of stress and uncertainty. Are you ready to take on the challenge? Do you have what it takes to be a success? Ron Bakir is the CEO of HomeCorp, an Australian property development and urban planning company that has been operating since 2004. Using his wisdom, below you will find five tips that can make a difference in your future property development career.
Research, Research, Research
Investing in property is not too dissimilar from investing in a car or laptop. Sure, the stakes are higher but ultimately, the decision-making process should be the same. A wise and rational person analyses the market, weighing up all the options on offer. What are the demographics and reputations of the locations within your budget? Are there rental market forecasts available? How much is the cost of labour? What council requirements and regulations do you have to consider? Remember to always have detailed and thorough research using independent and credible sources.
It all really starts with an idea. Based on the research you have completed, start thinking of what types of projects you want to be involved in. Will you be pioneering or traditional? Are you interested in smaller ventures or do you have the resources to think big? Ideally you want to be as creative as possible, drawing inspiration from existing structures and successes. Once you have your idea, start developing short-term and long-term goals and strategies.
Ask for Advice
During the brainstorming and planning process, don’t be afraid to ask for advice from friends and family. It is amazing what kind of insightful guidance you can receive, even from those who have never been involved in investing or developing properties. Dick Smith, another famous Australian entrepreneur, was quoted as saying To be successful you must surround yourself with capable people and ask lots of advice. Of course, if you do have contacts with the relevant experience, be sure to pick their brains for tips and warnings.
A key difference between an aspiring property developer and a successful property developer is their level of patience. If your research indicates that now is not the time to enter the market, then don’t do it. If your intuition is telling you that a property is not quite sound, then follow it. Don’t be swayed by anyone and be prepared to wait for the ideal market, property and idea.
Ron Bakir certainly didn’t grow HomeCorp by being lazy or uninformed; staying up-to-date on relevant industry developments and trends will allow you to take advantage of any possible opportunities and prepare for future challenges. There are many websites, blogs, courses and magazines that cover the property development industry, so take the time to explore what is available.
Have you recently joined the world of property development? What tips have you heard? Share your thoughts by commenting below.
Photo credits: khunaspix – freedigitalphotos.net