If you’re going to make it as a property developer, you’ll need to be able to sell the blocks of land and new dwellings that you create. So you don’t want to take pot luck on location – you’ll want to take a careful look at which area has the most potential for success using your chosen development strategy.
You’ll quickly discover there are 537 councils in Australia, and because each council has its own rules and regulations, that means there are 537 different ways of executing your chosen development strategy.
Whether you intend to do sub-divisions or splitters, duplexes or townhouses, brownfield or greenfield development, the best way to maximise your opportunities is to choose one council and become an expert in the development rules of that council.
But how do you pick just one council when there are so many to choose from?
For most of us it makes sense to choose from the councils in our own state or territory. Not only are we likely to be most familiar with the councils in our own backyard, sticking within our own borders puts a limit on how far we’ll need to travel to run our development projects.
Now it’s a case of whittling dozens of councils down to the one that looks like your best bet for development success. We kick off this process by reading our state or territory’s strategic plan, a hefty document that will help us understand the government’s population growth plans.
These plans set out a vision to manage growth and change for a given area in the context of social, economic and environmental matters. What we’re looking for is information on where the government intends to funnel population growth via housing supply strategies and new or improved infrastructure.
You’re likely to find a handful of councils in your state or territory where the government intends to increase population density. You can use Google to check the population forecasts – we’re looking for a significant population increase to support new residential development. These are the councils you’ll want to focus on.
To whittle the list down further, you’ll need to factor in two key considerations: your development strategy and your risk profile.
Your chosen council will need to support profitable projects using your chosen strategy in the deal size determined by your risk profile.