Development Insight- Ep 56
About this episode
This episode discusses the complexities of property development feasibility and the importance of understanding financial risks and relationships in the industry.
In this episode of Development Insights, we dive into one of the biggest challenges in property development — understanding the numbers. We discuss why a feasibility is never an exact science, but rather a calculated estimate built around comparable sales, construction pricing, experience, and risk management. From purchase price, build costs, council fees, and final resale values, there are always moving parts that can impact the outcome. We break down why banks view a developer’s margin as a “risk margin” rather than just profit, and why having enough buffer in your numbers is critical if construction costs rise or market conditions change. We also cover the importance of choosing the right builder and consultants, why the cheapest option can cost you more long term, and how quality relationships with architects, planners, builders, and trades can make or break a project. Key topics: • Why feasibility numbers change throughout a project • Profit margin vs risk margin • The importance of conservative assumptions • Using comparable sales instead of relying on hope • Choosing quality builders and consultants • Why experience and relationships have real value • Understanding…
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