Property development - Is it for me?

me? Property development: is it for

Tandi Gill is a co-owner of RE/MAX Advantage. She and sales associate, Reno Muscat, developed and created the RE/MAX Advantage Project Marketing Division and work directly with property developers and project marketers in South East Queensland. VIEW spoke with Tandi about property development and property marketing.

What is property development?

The scope of a project can range from inner-city high-rise buildings to smaller suburban LMR (Low Medium Residential) sites catering for homeowners and investors. We have been mostly involved with developers, commercial and investors with small to medium sized mixed-use residential development projects, ranging from 10 units to 60 units and including commercial/ office.

Do people ask you how they can get started in property development?

The scope of a project from sourcing a site and initial feasibility studies can be a large process particularly for first time developers. From us they need up-to-date information on current market conditions, buyer feedback in the marketplace, advice on marketing off-the-plan and feasibility for the project. It’s difficult to simplify because it involves such a wide range of activities and processes. For them to be successful, they need us to work side-by-side with them to gain knowledge on markets, economics, feasibility and mix of units, finance, town planning, the construction processes and the marketing of real estate projects considering other developments/timeframes.

Who should they be talking with?

Real estate agents; finance specialists; accountants; lawyers; town planners; urban designers; architects; building designers; engineers; environmental specialists; landscape architects; building contractors; project managers; construction managers; quantity surveyors; project marketers… and more. Depending on how complex the project is, they may need to call on some or all of these.

What steps are involved in a development?

My first suggestion is to establish how many pre-sales would be required to ascertain borrowing capacity and timeframes based on feasibility/mix of units and commercial for the project. Managing all associated costs over the course of the development is paramount. The process generally moves through the following phases: the pre-purchase stage of concept and feasibility; marketing the development to obtain pre-sales which includes providing architectural concept plans as well as finishes and fixtures, off-the-plan contract preparation, contract negotiation and purchase; town planning and development approval; planning and documentation (consultants like an architect, quantity surveyor and engineers); pre-construction (quotes and finance); construction; and finally completion.

Do you recommend using a project manager?

A beginner developer can definitely use a good project manager to be responsible for the successful delivery of the project, preferably on time and within budget. Ideally, they would be involved from the project’s inception through to completion.

What happens on completion of a project?

Depending on the developer’s circumstances, they can sell the development for a profit or hold on to it as an investment property.

What is the role of the project marketer?

Project marketers have thorough market knowledge and project understanding, from concept and preparation of feasibility/unit mix to sale, from design phase to returnon-investment. They have strong development industry contacts, marketing expertise and sales experience in off-the plan contracts/ process, plus passion for property. They will highlight the total benefits offered by the project – selling the developer, the development, the location, and then sell the apartment.

It seems the best path to becoming a successful property developer is to start small and work your way up, and to realise that you will need more knowledge than you probably think – and a team of experts that you trust, all working with you, who can tell you everything you need to know and offer direction.

When it comes to property development, there may be things you already know and definitely things you’ll know you don’t know, but you can be sure as the project moves through its phases, you will discover many things you didn’t even know you didn’t know or, in fact, needed to know!