Ask most people what they “know” about property development and you’ll get the same handful of beliefs: you have to be rich, all developers go broke, you need to be a builder, and the council will fight you every step of the way. On Episode 266 of the Property Mastermind Podcast, Hilary Saxton rapid-fired these myths at Bob Andersen — who has 40+ years and more than $1.5 billion in developments behind him — and he debunked each one. Here are the property development myths worth letting go of.
Myth 1: You have to be a multi-millionaire
Bob calls this “the biggest lie.” You do need money — but not multi-millions. Most development finance today comes from the non-bank sector, and the financier typically puts in 75–80% of what a project needs. That’s leverage. Bob’s rough thumb rule: take what your finished project would sell for and divide it by six. That’s roughly the cash you’d need to contribute. It’s a guide, not a guarantee — but it’s a long way from “you have to be rich.”
Myth 2: All developers go broke
Another myth. Bad press and clickbait headlines fuel it, and yes, some developers do come unstuck — usually through poor advice or poor numbers. But going broke isn’t the default outcome of development; it’s the outcome of doing it badly.
Myth 3: You have to be a certain “type” of person
Bob has mentored people from 18 to their 80s, across just about every profession: teachers, single mums, tradies, builders, town planners, engineers, farmers, bank employees, right up to doctors and surgeons. It’s almost easier to name a profession that hasn’t come through. There is no single “developer type.”
Myth 4: You have to be a builder
You don’t. Developers engage builders — building is a skill within a project, not the whole project. Plenty of builders actually come through mentoring precisely because they recognise their shortcomings in finding sites, due diligence, crunching numbers, marketing and finance.
Myth 5: Wait for the “perfect time” (and the “perfect site”)
Bob’s advice: start before you’re ready, not when you’re ready. Don’t wait until you’ve saved every dollar of equity — you’ll be chasing your tail. And the perfect site? It occasionally exists, but more often it’s created — by seeing what others miss and structuring the deal creatively.
Myth 6: You can’t make money in a tough market
Markets are fluid — interest rates, population growth, sentiment all move. But underneath it all, developers create shelter, and Australia has a genuine shortage of it. Opportunities shift between land subdivisions, duplexes, townhouses, even industrial and childcare — but they never disappear.
Myth 7: The council is always against you
Generally, no. Some councils are more pro-development than others, and attitudes change with elections and staff. State governments have been fast-tracking approvals in several states. Good consultants — town planners and engineers with local relationships — make a real difference.
Myth 8: Skip the feasibility, quit your job, and just wing it
Three myths in one. You don’t need to quit your job — hundreds have started while working full-time. You can’t skip the feasibility — development is all about the numbers. And you can’t wing the education: as Bob puts it, “the graveyard is full of would-be developers” who thought they could.
The bottom line
Most property development myths come from ignorance, ego or well-meaning people who simply don’t know. The truth is more encouraging: development is open to ordinary people who get the right education, the right team and the right advice.
If today’s episode has you thinking differently, our free live masterclass walks through the whole process — a great, low-pressure place to start. Register here, or listen to Episode 266 in full to hear Bob bust every myth himself.
General education only, not financial, legal or tax advice.