Ep. 174 – How Much Money Can You Realistically Make In Property Development

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:

1. Introduction to Property Development Profits [02:02]
2. Real-Life Example: Liam Nagle’s First Development [02:57]
3. Understanding Profit Variables in Property Development [04:12]
4. Two-Lot Subdivisions: Profit and Timeframe [06:06]
5. Duplexes and Two-Lot Subdivisions with Houses [09:45]
6. Profit Margins and Return on Cost [14:06]
7. Four to Eight Townhouses: Profit and Time Efficiency [16:21]
8. Staging Projects and Reducing Debt [24:57]
9. Comparing Townhouses and Apartment Blocks [23:36]
10. Financing and Feasibility in Staged Projects [25:08]
11. Conclusion: The Potential of Property Development [26:06]
12. Final Thoughts and Contact Information [28:39]

About Hilary Saxton: Hilary Saxton is a performance and mindset strategist who motivates, trains, and coaches people who crave knowledge and success in their property and business life. Hilary has had a varied career in property and business spanning at around more than 25 years now. She takes an honest, upfront approach towards both people and process issues. Hilary provides solutions through incremental and transformational change that delivers the success her clients both want and need.

Bounce Back Better Podcast: https://episodes.fm/1707096100

About Bob Andersen: Bob Andersen (known in the property industry as “The Deal Maker”) is a Property enigma. When it comes to creating financial freedom for his followers, his “thinking” is refreshingly simple. He has the ability to make the seemingly complicated, uncomplicated. Bob has changed the lives of so many people by training them to use property development as a vehicle to build substantial cashflow and long term wealth. This in turn, has given them control over their lives and a lifestyle they could previously only dream about. It has been said that Bob has created more property millionaires in Australia than any other educator / mentee out there through his highly acclaimed property development courses. Thank goodness for Bob! Because there are way too many so-called Property education experts out there. Several, even past students, have ‘borrowed’ Bob’s material in an attempt to ‘be Bob’. As Bob says, “I must have done something right, but you can’t ‘borrow’ over 35 years of experience and over $1 billion worth of projects spread across all states of Australia and in all stages of the property cycle”. 

Connect with Property Mastermind: 

• Property Mastermind Facebook: https://www.facebook.com/PropertyMastermind
• Property Developer Secrets and Hacks Facebook group: https://www.facebook.com/groups/2581187315284341
• Hilary Saxton Facebook: https://www.facebook.com/HilarySaxtonCoach

• Instagram: https://www.instagram.com/propertymastermind/
• YouTube: https://www.youtube.com/channel/UCt31KlQu9azoojEHPLvXgmA
• Property Mastermind Website: https://www.propertymastermind.com.au/

It has been a pleasure and we look forward to seeing you in the future episodes!