Whether we realize it or not, managing risk is something we all deal with every day. For example, the simple process of crossing a street involves a certain degree of risk which we manage without even blinking an eyelid.
Let’s take a look at some of the more notable risks in performing a property development project:
Risk 1 – Not Having Enough Knowledge
By far and away the greatest risk in property development is the risk of undertaking a project with insufficient knowledge. For more information about town planning consultants in Gold Coast, you can explore this link.
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Many people will tell you that ignorance is bliss but when it is your money in the deal and your name as guarantor on the loan ignorance can be a very costly thing! So, how can you manage this risk and become more knowledgeable in property development? Well, there are two main options available to you.
Firstly, track down some quality property development books and acquire a comprehensive knowledge of the property development process.
Secondly, with this knowledge, you should then attend a quality property development workshop to sharpen up the practical application of your knowledge.
Risk 2 – Paying too Much for Your Development Site
Comprehensive financial feasibility must be performed before purchasing a development site. Given that financial feasibility is only as good as the assumptions made in it, you must do your homework to ensure the accuracy of your assumptions.