Category Archives: Client Case Studies

A 20% Development ROI is Difficult to Achieve – but it’s Possible

A typical Melbourne townhouse development project takes about 24 months, from purchase through to sale. I generally allow 12 months to attain planning permits, complete construction documentation, and tender for a fixed building contract, plus another 12 months to complete construction. Many developers expect a 20% Return on Investment for an end-to-end project. While ambitious, […]

How to Make $340k in 12 Months

Walter emailed me in March last year, enquiring about our property development services. He’s an Australian citizen living overseas, and is widely experienced in property development across the globe. Intending to settle back in Melbourne in a few year’s time, Walter (not his real name – he’s a private guy) wanted to get some projects […]

Smart Property Investors Manufacture Equity Through Development

Smart property investment is not this: buy a property, wait for it to increase in value, then draw down equity from that property to use as a deposit on another investment property, wait for them both to increase in value, then repeat. I know some people make this work, and congratulations to them, but it’s […]

A Simple, Effective Strategy for Bidding At Auction

I bought a property at auction for a client the other weekend with a simple but effective strategy… Quietly study the competition until bidding hits the reserve, wait for things to slow down a bit, then bid hard. Every property, campaign, and auction is different, so this isn’t a one-size fits all approach (i.e. I use different […]

Property Developers Must Anticipate Future Market Directions

Melbourne house prices have risen substantially over recent years. But property development is predominantly about future market prospects… What will these townhouses be worth once built -24 months from now?? As Real Estate Analysts, we know House Prices tend to increase in response to low and falling interest rates, and to an average Aussie Dollar. […]

How To Develop Property in a Joint Venture

If you’re thinking about getting into property development, then a Joint Venture with an experienced, credible partner can make good sense. Joint Ventures work well when partners compliment each other Partner with someone who has something that you need, and who needs something that you have. Complimentary skills, backgrounds, and assets lead to clarity of […]

Passed-In Properties Make for Good Buying

Successful negotiators seek to create urgency on the other party. When an agent tells you that interest in a property is high, or that his/her vendor is seriously considering an offer from another buyer, your heart rate goes up – you don’t want to lose it!! Auctions create urgency amongst buyers, because an auction campaign […]

Some of the Best Properties Never Hit the Market

If you’re looking for a specific type of development property, then yes, it is important to establish relationships with local agents. In search of a townhouse development project 10-odd years back, I introduced myself to agents at opens, and explained my specific requirements (under $500k budget, corner block, dual occupancy, etc). Of course, as a result, I […]

The First Negotiating Principle – Know Who Has the Leverage

Negotiation is about leverage. When purchasing a property, you have the most leverage when: It has been on the market for a long time, and/or No competition exists from other buyers The first point of leverage (time on market) is easy to determine, and simple to understand. Every property will sell for the right price, and […]