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The 50 things right.

By Peter Micalos

People often contemplate what it takes to deliver a successful property development.

 

The answer is much more complex then one might think on face value.

 

The reality is that successful property developers need to get 50 hard things right. Of these 50 things, the average pundit on the street wouldn't even know what 85% of the terms actually mean.

 

The journey starts by recognising that Developers sell products to consumers. Just like many other businesses do in the world.

 

Many Developers don't actually pause and recognise that they sell products to consumers. Once this is acknowledged, we can then ask ourselves the following questions:

 

 - What does the consumer want ?

 - What can they afford ?

 - How can I deliver this and make a profit ?

 - If I can't give them what they want how do I change what they want and offer them an alternative ?

 - How do I make sure they are happy with what I have sold them ?

 - How do I keep doing this over and over again ?

 

To execute the above you need to get 50 things right. Its not one thing in isolation that will deliver success, its the combination of everything that is powerful and leads to the best results. Here are the 50 things in no particular order:

 

 

1 - Site selection and acquisition

2 - Paying the right price for the land

3 - Getting the design right

4 - Market research on what the consumer wants

5 - Appointing the right architect

6 - Appointing the right consultants

7 - Obtaining the right yield and density

8 - Creating a good design outcome

9 - Collaborating with the builder early

10 - Collaborating with the sales teams early

11 - Submitting a quality DA submission

12 - Effective engagement with Government and council

13 - Effective engagement with community & stakeholders

14 - Obtaining a timely and quality DA approval

15 - Having a strong vision for the urban and design outcome

16 - Effective pre-construction design and planning

17 - Selecting the right builder

18 - Contract negotiation and execution with the builder

19 - Value engineering

20 - Robust cost planning

21 - Using the right sub-contractors on a job

22 - Maximising the yield

23 - Design flair

24 - Appointing a quality lawyer

25 - Obtaining strong valuation's

 

 

 

 

26 - Financing the project with the right capital structure

27 - Having a robust contract of sale

28 - Having a quality Development Manager

29 - Strong governance

30 - Executing an effective marketing campaign

31 - Good market research

32 - Implementing a good pricing strategy

33 - Dynamic pricing

34 - Implementing the right legal structuring

35 - Strong PR strategy and execution

36 - Having a powerful and engaged sales team

37 - Using effective property technology

38 - Knowing the customer

39 - Getting the GST structuring right

40 - Getting the tax planning right

41 - Running a quality registration process

42 - Proactively managing settlements effectively and on time

43 - An effective sales & marketing strategy

44 - Strong financial management & reporting

45 - Getting the product right

46 - Strong leadership

47 - Maximising return on equity

48 - Good risk management and de-risking

49 - Speed of delivery

50 - Leaving enough of the pie for everyone to make money

 

 

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