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The most important step in selecting a profitable development site is knowing your target market. In particular, you want to know who’s going to buy your stock and why they’ll want to buy it.
While some developers target the top end luxury market we prefer to focus on the affordable segment of the market. This is because there are only a few wealthy people, and generally these people have very discerning and particular tastes that can be difficult to predict.

1. Affordability

We try to create a product that’s suitable for first-timers, down-scalers and investors. This means we are  always looking to develop product that’s around the median price, or even slightly below the median, in a targeted area. This has proven to be a very stable niche because even during crises like the GFC, people still wanted housing and so the affordable segment didn’t go backwards, unlike the top end, which took a beating.

2. Location, location, location

The second vital key to site selection relates to that age-old adage of “location, location, location”. You simply can’t go wrong by starting with an in-demand location. This means knowing where the property cycle is at and targeting general regions that are due for a run on capital growth.

3. Research

Once you’ve made your target region selection, the third key is narrowing the field of selections to find the best site you can for your buyers. We always look for sites that have superior capital growth prospects, and which also will be neutrally or positively geared.

4. Infrastructure

The fourth vital key to selecting a great site is to ensure the area has great infrastructure investment going on that will attract new people to the area over the long term. This means that it needs to have great transport, ideally rail, bus and road.

5. Healthy profit projections

The final part of your research is ensuring the particular site is going to yield a sufficient profit that the banks will fund your project. Remember banks only lend to viable projects and developers with a track record of successful delivery, therefore you’re going to need to demonstrate that you know your numbers in great detail.
If you’d like to see an example of a detailed research report that’s going to make the banks love you, and have buyers knocking down your door, then click here to see a sample Feasibility Report.
For a Free Review of Your Situation, Call 1300 791 179 for an Obligation Free Consultation.