Property Development Matters
PROPERTY DEVELOPMENT WHAT YOU NEED TO KNOW With interest rates at a record low, there is definitely a sense of optimism in the real estate market across the Sunshine Coast and South East Queensland Region. Lots of people are considering capitalising on market conditions and either develop, or invest in the property market. We live in a world of instant gratification with quick fix and get rich quick schemes. Development is really about having a long term strategy and having persistence and perseverance to the end. Property development is a multifaceted business encompassing activities that can range from a complex renovation, splitter, and subdivision or developing master communities. Developers are the coordinators of these activities and really orchestrate the process from the inception to the end. To be a successful developer you need to have these skills:
Successful Negotiator – You have to be a good listener, a good communicator and, above all, a good negotiator to reach the best price and terms for the purchase of the land or property. Your profit depends on how much you purchase it for. Team Player – You need to lead the team and understand how to communicate and get the best out of your team. Problem Solver – Life doesn’t always go perfectly to plan and property development is no exception. Solving problems will rely on knowledge and
SUSAN LINDEQUE Linzen Group
experience. Sometimes you won’t have the answer so you need to build a strong team around you. Coordinate and Organiser – Property development is all about managing people and processes. Having good project management skills will definitely be one of your biggest assets. Time Management – Time Management is crucial for any project, as time is money. You need to be organised and proactive and always be on top of what is happening. Financial Skills - You need to create a detailed financial model for each development to ensure you will end up with a profit. Most developments can encounter unforeseeable problems, costing money, and you have to ensure from the beginning that you have enough profit in the deal. Development is normally perceived as high risk activities and financial institutions today have stringent financial models to ensure that they minimise their risk. Therefore it is vital that you develop all the skills above but more important that you perform stringent due diligence processes and negotiate good terms and conditions when you acquire any property or land for development. Remember that nothing is achieved without effort and sacrifice. If you believe you have the persistence, perseverance and take a long term view, property development will give you some of the greatest financial rewards in real estate investing.
ABOUT THE AUTHOR Susan is the CEO and Co-founder of Linzen Group which is a multi-faceted and diverse property development group offering a one stop real estate shop. Susan has more than 25 years of successful commercial and financial experience with a background as a registered Chartered Accountant and Real Estate Agent. Her extensive expertise allows her to recognise market trends, demands and conditions to accurately predict project outcomes.
OUR PURPOSE IS TO BRING YOUR PROPERTY DEVELOPMENT VISION TO LIFE! Our services are tailored to suit your individual or business needs and our delivery approach is guided by our expertise and your requirements. • Property investment advise and strategy • Set up appropriate structures for asset protection • Specialised tax advice on income tax, GST and Capital Gains Tax • Land development and Construction • Dealing with Council, townplanners, engineers and other consultants
• Due Diligence and Financial Feasibility for all projects • Project management to ensure projects are on track • Joint Venture Partnerships with investors or land owners • Seek funding for projects
1 HOUR FREE CONSULTATION TO BM READERS! Linzen is also offering exclusive workshops every Saturday for groups of 10 – 15 who are serious about seeking expert advice and consultation on property investment and development. Please note that the workshops do not sell any educational material.
Linzen Group • P.1300 766 261 • M.0413 887 850 • info@linzen.com.au • www.linzen.com.au BUSINESS MATTERS 37
