Property development is a complex field where many different factors impact how much profit a project can make. Two of the biggest factors are the size and type of the development. These elements play an important role in determining how successful a project will be financially.
For example, the size of a development project is directly connected to the profits it can bring. A two-lot subdivision, for instance, usually makes less money than a three-lot subdivision on the same street. This is because larger projects typically include more units or properties, which increases the chance to earn more overall. While a two-lot subdivision might lead to a small profit, a three-lot subdivision can increase that profit by benefiting from lower costs per unit and selling multiple properties at once.
In this week’s episode, Hilary and Bob dive into the question: how much money can you realistically make in property development. They discuss various types of projects, the impact of location, and the importance of understanding profit margins. They also highlight the differences between duplexes, townhouses, and larger developments, as well as strategies for maximizing profits through effective financing and investment approaches. So if you’re curious about property development profits and what you can realistically make, you won’t want to miss this week’s episode!
Episode Highlights:
Introduction to Property Development Profits [02:02]
Real-Life Example: Liam Nagle’s First Development [02:57]
Understanding Profit Variables in Property Development [04:12]
Two-Lot Subdivisions: Profit and Timeframe [06:06]
Duplexes and Two-Lot Subdivisions with Houses [09:45]
Profit Margins and Return on Cost [14:06]
Four to Eight Townhouses: Profit and Time Efficiency [16:21]
Staging Projects and Reducing Debt [24:57]
Comparing Townhouses and Apartment Blocks [23:36]
Financing and Feasibility in Staged Projects [25:08]
Conclusion: The Potential of Property Development [26:06]
Final Thoughts and Contact Information [28:39]
