Introduction
Property investing and property development are two very different strategies—each with their own strengths, challenges, and outcomes. In this episode, we’re walking through the key differences between the two, sharing stories from our own journey and what we’ve seen across the industry.
We unpack what’s involved in each approach, how to know which one suits your current situation, and why combining both can be a powerful way to build wealth. Whether you’re looking for cashflow, long-term growth, or a mix of both, this episode will help you think more clearly about your next step.
Episode Highlights
[01:20] Bob’s advice: stop procrastinating and make a decision
[02:40] Hilary’s industrial project story: pulling the trigger changes everything
[04:00] Aussies love property—but what kind of strategy suits you?
[05:10] Why long-term growth is the backbone of investing
[07:30] How many properties do you need to retire?
[09:10] Easier finance and lower barriers with investment
[10:40] The catch: limited control and slower growth
[12:00] Vacancy rates and management headaches
[13:50] The WA property crash and what to learn from it
[15:00] Balancing capital growth and rental yield
[16:30] What happens when you hit the serviceability wall
[18:00] Property investing as a starter strategy
[19:05] Pros of development: higher margins and faster returns
[20:15] Built-in buffers and more control over the outcome
[22:05] The creative and exciting side of development
[24:00] Joint ventures—develop without your own capital
[25:30] Risk factors and the importance of proper education
[27:45] Why feasibility matters more than ever
[30:30] The best of both worlds: develop and hold
[34:00] How to use development to build a portfolio faster
[36:00] The magic formula: pay cost price, not retail
[39:00] What’s faster—saving $250k or developing it?
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The Episode In Brief
Episode 210 explores the key differences between property investing and property development—and why doing both can give you a real advantage.
Hilary: Are you interested in property investing or property development? Let’s look at which strategy suits your lifestyle, budget and goals.
Bob: You can build wealth with either—but only one will get you there faster.
Investment as a Starting Point
Hilary: For many, property investing is an accessible way to begin. It’s familiar, easier to finance, and can provide solid long-term growth.
Bob: But most people only ever get to one or two properties. If your goal is to retire comfortably on rental income, you’ll need more—and that’s where many hit a wall with serviceability.
The Case for Development
Bob: Property development creates equity much faster. You’re generating large chunks of capital that can be recycled into new projects or held as long-term assets.
Hilary: It’s also more exciting. There’s something very rewarding about being part of the process from design to delivery, especially when you’re adding real value to a site.
Managing the Risks
Hilary: Development does require more knowledge and upfront capital. But you can reduce the barrier by doing joint ventures, where you bring the know-how and someone else brings the money.
Bob: It’s all about managing the risks—understanding feasibilities, valuations, and market conditions. Education and good planning make all the difference.
Develop and Hold
Bob: The sweet spot is developing and holding. You keep some of what you build and sell the rest. That way your profit becomes your deposit, and you don’t need to save again.
Hilary: It’s a smarter way to grow a portfolio. You’re essentially acquiring property at cost, not retail—which puts you hundreds of thousands of dollars ahead on every deal.
Real-World Lessons from Bob & Hilary
You can start with investing, but development speeds up the journey.
Risk in development is manageable with the right education and planning.
Joint ventures are a powerful way to get started without needing all the capital.
Develop and hold allows you to grow your portfolio faster and more affordably.
Final Thoughts
Property investing and development each have a place in a strong strategy—but combining them can be a real game changer. The key is knowing when to do which, and how to structure your projects for both profit and growth. If you’re serious about building long-term wealth, it might be time to start thinking like a developer.