Answers To The 19 Most Common Property Development Questions
Article summary
This comprehensive guide tackles the 19 most frequently asked questions about property development in Australia. Covering everything from getting started with no experience to managing risks and finding profitable sites, it provides essential knowledge for aspiring developers.
Topics include financing options, profit margins, team building, approvals processes, and common mistakes to avoid. You’ll also find practical insights on feasibility studies, development timelines, business structures, exit strategies, and the step-by-step process successful developers use to build profitable projects.
Introduction
Getting into property development can feel overwhelming when you’re staring at a blank page and wondering where to begin. The good news is that every successful developer started exactly where you are right now – with questions, uncertainty, and the drive to figure it out.
Over the years, we’ve noticed the same questions coming up again and again from people just like you. That’s why we’ve pulled together the 19 most common questions we hear and given you the straight answers you need.
No fluff, no overcomplicating things – just practical insights that will help you understand what property development really involves and whether it’s the right path for you.
Let’s dive in and tackle these questions one by one.
The questions
- How do I get started in property development with no experience (or little money)?
- How can I finance a property development, and how much of my own money is needed?
- How do I find a good development site and identify a profitable project?
- How much profit can I make, and what profit margin should I target?
- What is the step-by-step process of a property development?
- How do I conduct a feasibility study and make sure the numbers stack up?
- How long does a development project take from start to finish?
- What approvals and permits do I need, and how long do they take?
- What are the common mistakes new developers make, and how can I avoid them?
- Do I need a team? Which professionals should be on it?
- Do I need a builder’s licence, real-estate licence or formal qualification to be a developer?
- How can I learn property development (best courses, books, resources)?
- Should I sell the completed project or hold some/all as an investment?
- How do joint ventures work, and how can I find partners or investors?
- What business structure is best, and what about GST/taxes?
- What personal skills or traits do I need to succeed?
- Are property development courses or mentoring programs worth it?
- How risky is property development, and how can I manage those risks?
- Should I consider commercial property development, and how does it differ from residential?
Property Development 101
Learn all the steps of a successful project.
Written for budding developers.
1. How do I get started in property development with no experience (or little money)?
Here’s the good news: you don’t need a builder’s licence, deep pockets, or a family construction business to get started. What you absolutely do need is a solid, repeatable process, the right team around you, and the discipline to crunch numbers before your emotions take over.
The key is starting small. Learn the ropes on a manageable project, then partner with experienced developers or investors if capital is tight.
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2. How can I finance a property development, and how much of my own money is needed?
Most lenders want to see 20-30% equity in any deal, but here’s where smart structuring comes in. Private investors, joint-venture partnerships, or mezzanine financing can help reduce that upfront requirement significantly.
The trick is matching your funding to each stage of the project. Use cheaper debt early on, then top up equity later for flexibility when you need it most. And here’s a pro tip: always model potential interest rate changes in your feasibility study.
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3. How do I find a good development site and identify a profitable project?
Profitable sites live at the sweet spot where demand, zoning, and solid numbers intersect. Your job is to become a local area expert. Check what services are available, study the planning schemes, and run a quick feasibility analysis before you spend money on detailed reports.
Here’s the thing about good development sites: they rarely jump out and scream “develop me!” You need to dig deeper and look beyond the obvious.
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4. How much profit can I make, and what profit margin should I target?
Aim for a minimum 15% return on cost for small projects like subdivisions and duplexes, and 17-20% for bigger townhouse projects.. This isn’t just our recommendation – it’s what the financiers use as their benchmark too. Drop below 20%, and most banks will tell you to walk away.
For smaller projects, you might see profits between $150,000 and $600,000. Larger residential developments or light commercial projects can push higher, but remember: bigger profits usually mean bigger risks.
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5. What is the step-by-step process of a property development?
Most successful developers create their own refined process after years of trial and error. Here’s the 9-step framework we teach:
- Find a viable site – This is where it all begins
- Due diligence – Dig deep before you commit
- Feasibility analysis – Make sure the numbers work
- Acquire the site – Secure your opportunity
- Financing – Lock in your funding
- Design and approvals – Get the green light
- Construction – Build it right
- Marketing – Find your buyers
- Settlement – Close the deal
Each step builds on the last, and skipping any of them is asking for trouble.
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6. How do I conduct a feasibility study and ensure the numbers stack up?
Build yourself a conservative spreadsheet (our students use our proprietary calculator, but you can create your own). Include everything: land costs, construction, consultants, holding costs, marketing, GST, and always add a contingency buffer.
Then stress-test everything. Move your sale prices and costs up and down by 10% and see what happens. If your deal still clears that crucial 15-20% margin after this beating, you’re probably on the right track.
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7. How long does a development project take from start to finish?
Honestly? There’s no crystal ball for this one, but here are our rough estimates to help you assess deals:
- Simple splitter or 2-lot subdivision: 6-12 months
- Duplex: 18-22 months
- Four-pack townhouses: 20-28 months
Council delays, financing hiccups, or builder issues can add months to any timeline, so always build buffer time into your calculations.
Dig deeper
- How Much Money Can You Make In Property Development? (includes timeframes)
- The Step-by-Step Property Development Process (scheduling section)
- Podcast Episode 201 – Managing the Construction Process
8. What approvals and permits do I need, and how long will council take?
Most projects need two key sign-offs:
Planning approval (Development Application or Planning Permit) is council’s way of saying your concept fits their local rules. Budget 2-5 months for straightforward residential projects, longer if you trigger extra reports for traffic, bushfire, or heritage considerations. Times can vary substantially from council to council.
Building approval (Construction Certificate or Building Permit) checks your detailed plans against the National Construction Code. Once your documentation is complete, allow 4-8 weeks with a private certifier or council.
You might also need operational works approval for services and driveways (2-6 weeks), subdivision approval for new titles (4-8 weeks), and an occupation certificate after final inspection (1-2 weeks) before settlement. A good town planner will map out your exact timeline and keep things moving.
Dig deeper
- The Complete Property Development Process (Permits & Approvals step)
- The Step-by-Step Process of a Profitable Property Development (Approvals section)
- Podcast Episode 167 – Is It Worth Buying a Site with DA?
9. What are the common mistakes new developers make, and how can I avoid them?
New developers make mistakes because they simply don’t know what they don’t know yet. Here are the top five project killers:
- Skipping thorough feasibility – The numbers don’t lie
- Buying the wrong site – Location and zoning matter
- Under-estimating timeframes – Everything (probably) takes longer than you think
- Running out of money – Cash flow is king
- Trying to do everything solo – This isn’t a one-person game
Stick to your process, stay conservative with your numbers, and build your A-team early.
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10. Do I need a team? Which professionals should be on it?
Property development is definitely a team sport. At minimum, you need these experts:
- Town planner
- Architect or designer
- Surveyor
- Finance broker
- Accountant
- Lawyer
- Builder
As you scale up, add engineers, quantity surveyors, and project managers to the mix. Choose team members based on fit and track record, not who gives you the cheapest quote. And seriously consider engaging an experienced mentor – it’s a game-changer.
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11. Do I need a builder’s licence, real-estate licence or formal qualification?
No. Anyone can wear the developer hat. The licenses sit with your builder, certifier, engineers and sales agent. Your job is orchestration – assembling the right experts and managing risk effectively.
Education and mentorship replace formal qualifications in this game.
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12. How can I learn property development (best courses, books, resources)?
Blend self-study with networking and structured training. Read local development guides, stay current with council planning updates, and consume relevant podcasts during your commute.
When you’re ready to get serious, invest in a program that provides feasibility tools, deal reviews, and live support. A simple Google search isn’t enough for something this complex and expensive.
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Free Online Training
We host regular free online events for developers of all levels.
13. Should I sell the completed project or hold some/all as an investment?
This depends on your cash flow needs, tax position, and where we are in the market cycle. Selling crystallises your profit and pays down debt, while holding can create ongoing passive income and long-term capital gains (often through refinancing strategies).
Model both scenarios before you lock in your exit strategy.
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14. How do joint ventures work, and how can I find partners or investors?
A joint venture is essentially swapping money, land, or expertise for an agreed profit split. You can find partners through networking events, finance brokers, or landowners looking for development upside.
When you pitch, come armed with an airtight feasibility analysis and a solid execution plan. Before moving forward, write a crystal-clear agreement covering everyone’s roles, capital contributions, decision-making rights, and exit triggers.
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15. What business structure is best, and what about GST/taxes?
Most small developers use a standalone company or unit trust with a corporate trustee for asset protection and clear profit distribution. You’ll need to register for GST if you plan to sell new dwellings.
Talk to a property-savvy accountant before signing any contracts. This area is complex and the stakes are high, so get professional advice tailored to your situation.
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16. What personal skills or traits do I need to succeed?
The best developers share these key traits:
- Resilience – Deals will test you
- Clear communication – Keep everyone informed
- Problem-solving ability – Issues will arise
- Emotional intelligence – Manage relationships effectively
- Time management – Juggle multiple moving parts
Development projects throw curveballs regularly. The best developers stay calm, adapt quickly, and keep all stakeholders in the loop.
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17. Are property development courses or mentoring programs worth it?
Quality training can collapse your learning curve, help you avoid six-figure mistakes, and keep you accountable to your goals.
When vetting providers, look for real-world experience, proven track records, ongoing support, and comprehensive feasibility training. These elements are non-negotiable.
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18. How risky is property development, and how can I manage those risks?
Development risks span market shifts, funding gaps, construction cost blowouts, and approval setbacks. You manage these risks through conservative feasibility studies, solid contracts, adequate contingency buffers, and close project monitoring.
Knowledge and preparation eliminate most nasty surprises before they happen.
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19. Should I consider commercial property development, and how does it differ from residential?
Commercial projects can deliver higher dollar profits, but they demand longer lease commitments, bigger capital requirements, and specialised financing. Property values are based on rental yields rather than emotional appeal, so it might pay to secure a quality tenant or pre-commitment before you start building.
Our advice? Learn the residential development game first, then consider scaling into commercial with solid advisers once you’ve mastered the fundamentals.
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Conclusion
Property development isn’t something you master overnight, but it’s also not as complicated as many people think. The key is approaching it systematically, asking the right questions, and building your knowledge step by step.
Every question we’ve covered here represents a hurdle that thousands of developers have already cleared. The financing challenge, the site selection process, the team building, the approvals maze – they’re all solvable problems when you have the right information and guidance.
The most important thing to remember is that successful property development comes down to three fundamentals: understanding your numbers, assembling the right team, and staying disciplined with your process. Get these basics right, and you’ll be well ahead of most people who jump in without proper preparation.
If you’re ready to move beyond questions and start taking action, the path forward is clear. Start with education, begin building your network, and when you’re ready, find a mentor who can guide you through your first project.
The property development industry needs more people who are willing to do the work properly. The only remaining question is whether you’re ready to be one of them.
Ready to Take the Next Step?
Join hundreds of successful developers who started with the same questions.
Book a call with Hilary to discover your path forward.