Property development.... anyone dabbled in it?

[Leper]

Hi folks.

I'm looking at doing an industrial development in Brisbane (in either of Gold Coast or Sunshine Coast corridors) from scratch as part of a consortium of 5 work colleagues. At the moment it's just a seed I'm planting in peaople's heads and I'm starting to look at the numbers. Part time gig that may grow into something more.

I could speak to accountants; lawyers; councils; agents and so on but I'm sure they'll all just tell me I should go to Big Footy first for advice.

If anyone has done this sort of thing before I'd be interested in opinions on what the risks / opportunities / pitfalls are.

I see the biggest opportunity (more so than a risk) is what the market does in the time it takes (say 2 years) from start to selling.

Risks I see are things like getting messed around or not budgeting enough for planning / building approvals; insurance; legal costs and so on but the main one being construction cost. But I'm confident these risks can all be mitigated with smarts and a little homework.

Any thoughts / opinions appreciated.

 

[bunsen burner]

I'm doing my first development soon but residential. I will let you know what happens.

Council has been a pain in the arse to deal with already.

Who are you getting to build it? A master builder or are you going to contract everything out yourself?

 

[Leper]

Yeah council is one of my small fears actually (well, them and lawyers!), but I feel it's just one of those hurdles that has to be managed. My gut feel is councils want these developments to bring in more rates income so will support it in principle. Bureacracy (and potentially dealing with idiots)is the issue I guess.

Although this is still in it's infancy, the plan is to project manage it ourselves and let out the construction in a dozen or so packages. We have five players in the team who are all experienced in the construction game (one of whom is a Bris local who would do the tilt up panel subcontract) so am comfortable we will handle that side of it well. It's the legal / bureaucratic carp I'm trying to get a feel for.

 

[Papa G]

Do it on the Sunshine Coast because the Gold Coast is an absolute ******** hole.

 

[bunsen burner]

Do it on the Sunshine Coast because the Gold Coast is an absolute ******** hole.

Who cares if the place is a bum hole? If it makes money then go it.

 

[CattyBossDog]

I could speak to accountants; lawyers; councils; agents and so on but I'm sure they'll all just tell me I should go to Big Footy first for advice.

If anyone has done this sort of thing before I'd be interested in opinions on what the risks / opportunities / pitfalls are.

Get your self a top accountant, a good architectual & engineering firm, and very good solicitors onbord. You will need them virtually on a daily basis once your developments get upwards of 20 properties per project. Yes, you will have to pay them a lot of money, but they will make you a lot more money for your troubles.