The 2 types of developers.

By Peter Micalos

These days everyone is a property developer.

The attractive returns, promises of financial freedom and the flamboyant lifestyle are all louring factors for people wanting to enter the industry.

There are basically two types:

 - Commercial Property Developers

 - Private Wealth Managers

Both types are good and have their advantages and disadvantages.


 - Tend to be more aggressive

 - Are looking for "year on year" returns

 - Have a degree of corporate infrastructure

 - Actively manage risk

 - Typically adopt a "Trading Stock" sell down retail model

 - Product is safe and reliable

 - Have a sophisticated capital stack


 - Play a longer term game

 - Generally have a stronger balance sheet

 - Are more passive

 - Outsources more

 - Hold and retain stock more

 - Use less leverage

 - Smaller team

 - Less overheads

So what is a better model ?

A blend of both is very powerful.

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