If you want to minimise your risk and increase your chances of potential profit, it’s
essential to understand the problems you could run into during development.
The risks associated with property development may include:
Change in the market, including interest rates variations, elections, or recession.
Changes in planning and construction laws. These can include new council
requirements, new or revised environmental plans, and rezoning.
Changes in the property cycle that can affect demand and prices.
Increases in the cost of construction materials or labour because of unforeseen laws
or economic circumstances.
Builders or contractors going into liquidation during the construction phase of the
Adverse weather conditions like bushfires, flooding or cyclones that can setback a
Unexpected groundworks and other costs.
Disputes with builders and contractors that can lead to an extended construction
The difference between successful and unsuccessful developers is that successful
people take risks while also looking for ways to minimise them.
In our Property Developer Program, we teach students to identify and minimise risks
associated with development.