Are you curious about how property development can boost your financial future?
In this episode of the Property Mastermind Podcast, Hilary Saxton and Bob Andersen dive into the fascinating world of property development profits. From simple splitters to multi-townhouse projects, they break down potential earnings and share inspiring success stories from their mentoring students.
Whether you’re considering your first venture or looking to level up, this episode is packed with actionable insights to get you excited about 2025.
The episode highlights real-life examples and stories, such as a mentoring student’s success in moving into industrial property development. They also emphasise how property development can transform lives, offering significant returns even with part-time involvement. The episode wraps up by encouraging listeners to take steps toward their property development goals in 2025.
Episode Highlights:
- Technical Difficulties and New Year Tips [01:38] – Overcoming studio challenges and sharing a New Year’s tip about relaxation.
- Choosing a Word for the Year [02:33] – Tips for staying motivated in 2025 with a focus word or theme.
- Splitter Definition and Profit Expectations [06:26] – Explanation of splitters and typical profits ($100,000–$120,000).
- Building on Splitter Lots [08:49] – Exploring the added value of building on split lots, with profits of $400,000+.
- Two Lot Subdivision Explained [11:36] – Key differences between splitters and two-lot subdivisions, including costs and profits.
- Duplex Development Profits [13:40] – Discussing profits from duplex developments, typically $450,000–$600,000.
- Middle Market Duplex Example [16:05] – Insights into profits from middle-market duplexes and their financial impact.
- Managing Multiple Projects While Working [18:30] – How part-time property developers manage multiple projects while maintaining full-time jobs.
- Two Lot Subdivision vs. Duplex [18:45] – Advantages and disadvantages of two-lot subdivisions compared to duplex projects.
- Battle Axe Subdivision [20:52] – Introducing the concept of retaining a house while subdividing and building on the back lot.
- Profit from Battle Axe Subdivision [21:19] – Typical profits from battle axe subdivisions, around $350,000.
- Three Townhouses Development [23:19] – Exploring the process and profits of three-townhouse developments ($450,000–$500,000).
- Four Townhouses Development [24:15] – Increased profits ($600,000–$700,000) from larger townhouse projects.
- Scaling Up: Six to Eight Townhouses [27:25] – Discussion on economies of scale and higher profits in larger townhouse developments.
- Industrial and Commercial Developments [28:07] – Exploring the benefits and risks of industrial and commercial projects.
- Profit Margins in Industrial Developments [30:30] – Insights into higher returns (25–30%) in industrial projects.
- Return on Cost in Different Projects [31:14] – Understanding return on cost as a measure of project profitability.
- Encouragement for Aspiring Developers [31:24] – Inspiring advice for those considering property development in 2025.
- Conclusion and Next Episode Teaser [31:45] – Closing remarks and a sneak peek into the next episode.
