10 Things to Know Before You Start a Property Development

16 July 2026 · 3 min read

Property development can be genuinely rewarding, but it punishes people who skip the fundamentals. Before you commit to a site, a design, or a finance structure, here are ten things worth understanding properly.

1. Get the Feasibility Numbers Right Before You Fall in Love with a Site

The single biggest mistake first-time developers make is falling for a site before running the numbers. A proper feasibility study accounts for land cost, civil works, construction, professional fees, finance costs, and a contingency, then weighs that against realistic sale or rental values. If the numbers only work using optimistic assumptions, they don't work.

2. Understand the Zoning and Overlays That Actually Apply

What you're allowed to build depends entirely on the zoning and any overlays attached to the land, not on what you've seen built nearby. Heritage, vegetation, flood and bushfire overlays can all materially change what's achievable on a site, and it's far cheaper to discover this before you buy than after.

3. Know the Difference Between a Planning Permit and a Building Permit

A planning permit addresses whether your proposed use and built form fit the site and the surrounding area. A building permit addresses whether the actual construction complies with the National Construction Code. Most developments need both, in that order, and confusing the two is a common source of delay.

4. Budget for Civil Works, Not Just Construction

Roads, drainage, and service connections are often treated as an afterthought in early budgets, then turn out to be one of the largest line items once a site's actual conditions are understood. Our guide to land subdivision walks through what this stage actually involves.

5. Choose Your Finance Structure Before You Need It

Development finance works differently to a standard home loan, with lenders assessing feasibility, presales, and your own experience as a developer. Understanding what a lender will actually require, and lining up finance before you're under contract, avoids a scramble at the worst possible time.

6. Understand How Titling Actually Works

You can't sell or settle individual lots or apartments until titles are issued, which only happens once civil works are complete and council has signed off. If you're relying on individual sales to fund later stages, understand exactly when those titles will realistically be available.

7. Vet Your Builder and Consultants as Carefully as the Site

A development is only as good as the team delivering it. Check licensing, ask for completed projects you can inspect, and confirm who you'll actually be dealing with day to day. Our guide to choosing a builder covers what's worth checking before you commit, and the same principles apply when vetting a builder for a development rather than a single home.

8. Build In a Realistic Contingency

Costs move between feasibility and completion, sometimes for reasons entirely outside your control. A contingency of at least 10 to 15 percent of construction cost is standard practice for a reason, and developments that skip this step are the ones that stall when conditions change.

9. Understand Your Exit Strategy From Day One

Are you holding for rental income, selling on completion, or selling off the plan before construction finishes? Each answer changes your finance structure, your risk profile, and your marketing timeline, and it's a decision worth making early rather than by default.

10. Get Comfortable with the Timeline

Feasibility, planning approval, civil works, construction and titling can easily add up to two years or more for anything beyond a single dwelling. Developments that budget realistic time, rather than best-case time, are the ones that stay financially sound through approval delays and market shifts.

If you're weighing up a development site and want a second set of eyes on the feasibility numbers before you commit, our team is happy to talk it through.

Start Your Project.
We’ll Take It From Here.

Tell us about your vision and we’ll be in touch within one business day. Obligation-free consultation.