Can you Make Millions in Property Development?
In the highly specialised market of property development you can make millions of dollars with a few well planned projects, properly financed and built on time and to budget.
The problem is, as most developers have experienced, all projects don’t always follow these rules or work out according to the numbers on the feasibility spreadsheets.
As a developer you have probably experienced some of these examples:
The DA always takes longer to get and Councils usually spring some surprises,
The land price is too high and the owner is wanting some of your profit,
The builders pricing is always too high or the contract has tricky out clauses,
The Agents retail sales estimates are never high enough to make the deal work,
The valuers price is less than you thought and the QS pricing is too high,
And to add to that, the bank now wants 60% in pre sales- so there goes more of the profit you thought you were getting,
Then you realise the deal is tight and you are short of funds and may need a joint venture partner or maybe mezzanine funding or a funder who doesn’t need pre sales.
Suddenly those millions of dollars of your money are slipping away!
There is a solution:
At Positive Finance Australia we specialise in taking on and solving some of those challenges for you. We can arrange;
– Land banking finance
– Development finance up to 100% of costs
– Mezzanine finance
– Joint venture partners
– Equity finance
– Finance with or without pre sales.
It’s very simple to try us out;
1: Contact our office and talk us through your project or send your feasibility spreadsheets.
2: We will do a preliminary assessment of your project and provide you with the general terms of a funding arrangement or package.
3; Upon you accepting that these general terms suit your needs we will then start the process to secure these finance arrangements or package for your project.
For a quote or a chat either call us on 1300 POSFIN (767 346) or request a quote
In most cases, the banks offer reduced interest rates such as “Professional Packages” that have a rate reduction of up to 0.70 off their normal variable rate to those clients who they may deem as professional or investment borrowers.
Now is the time for all households to take action and fight back by considering refinancing your current liabilities with the new Bank Buster Home Loan * and save around $185 per month * on your repayments, based on a $300,000 mortgage at the average variable rate.
Compare the following rates to your own rates;
The Bank Buster Home Loans are available for both full documentation 6.90% Variable Rate (7.130% Comparison Rate) applicants. This is not just a Honeymoon Rate. This is a lifetime reduction of 0.90% off the normal variable rate and will only change when the Reserve Bank of Australia changes their rates.
Imagine refinancing your personal and car loans, credit cards and so on into your mortgage and having a better-than-professional rate that will not only allow you to streamline your debts and ease the weekly budget, but it could also save you many years off your mortgage. Or buying a new house perhaps – That extra 0.20% adds up to a lot of extra monthly overheads.
Give us a call now on 1300 POSFIN (767 346) and mention this blog or visit Positive-Finance-Australia.com so we can help stop your hard earned income from disappearing.
* Conditions apply. Comparison rate applies to the example given and is based on a $300,000 loan over 30 years using the current variable rates.
Michael Constantinos
http://www.articlesbase.com/finance-articles/can-you-make-millions-in-property-development-66961.html
Is property development a viable way to make money at the moment???
I have 100k that I potentially can put into developing a property(s) I want to give up my office 9-5 and do this full time with my partner. What I really want is peoples opinions if property development is a viable way of making £ bearing in mind the current situation with intrest rates etc etc
I am not after millions.
We can relocate easily.
We would consider doing it abroad.
Any advice or opinions are welcome
Cheers!
Alex
I am totally open to any suggestions of where to PD – Home or abroad is fine.
I would look at getting an mortgage as well….!
If you have £100K to spare for PD then you can certainly make some good money.. Where are you looking UK or abroad
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property is much cheaper in Scotland than in England. if you are doing it abroad look into the re-sale of properties there is lots of loopholes. 100k wouldn’t get you much, the basic unsellable flat in the outskirts of Glasgow is about £60,000
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Try Bulgaria. Good profits, part of EC since January and a lot of Brits here.
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I recently moved there myself.
With the right investments property can be a reasonable bet in any economic climate, particularly if you are open to a number of options (like development or rental).
Whilst the property market is slowing it is still growing, and predicted to grow further for the immediate future. A lot of this is due to a lack of adequate supply to meet particular demand, and the growth of the buy-to-let market.
I am sure there is about 8 hours of television you could watch a day to realise what needs to be done in order to be a good developer, but from my own experience I would say that you need to be:
* Realistic. This isn’t about putting your stamp on a property, it is not interior design – it is about business decisions. The way to suceed is by finding properties which do not meet optimum market conditions, and getting them to that point for less money than they will eventually sell.
* Hardworking. You certainly don’t have to do all of redevelopment yourself, but anything you can do will help profitiability. To begin with at very least, you need to be emotionally, physically and mentally prepared to throw everyhing into projects – which will invairiably mean long hours.
* Tenacious. There is a strong business element to this, where key project management skills will make a difference to your bottom line. You will need to be comfortable building relationships with suppliers, negotiating fair prices, and ensuring workmen do what they are paid to do.
I think there is plenty of money to be made in this sector, for the right people. The problem is there are many people trying this after watching Sarah Beany et. al that simply can’t hack it.
Perhaps you should try this to begin with… look at houses for sale in your local area, look at what you could do with them, look at how much that would cost you, and think about how much they would sell for. As a very rough indication this would provide a platform for the sort of time / money you would be working for.
NB: Even if you do think there is money to be made, it is sensible to try and work this out as an hourly rate rather than a lump sum. Its a common trap for people to slave away for 6 months on a house to be impressed by a £15k gain – but if you remember this is a job for 2 of you, a £30k a year household income is probably less than you are on now!
I hope this doens’t sound too negative – the key is to really know what your getting into, and always always always remember it is a business you are running and decisions need to be rational cost based business decisions!
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