Post to SinFongChanRE.wix on 19/12/2017 at 1:41 PM
Commenting on “How to become a property developer”
https://www.domain.com.au/advice/how-to-become-a-property-developer-20171219-h030qk/
The higher the risk, the greater the return. Many people want to make "big" money in real estate, and lure into becoming property developers. Are there many successful ones? Are there more failed developers than successful ones?
It is the pessimistic Sin Fong talking again. Out of the blue, news media publish news of an ordinary person just won mega-million dollars lottery. Many readers write in commenting how lucky the winner is, and how deserving the windfall goes to the battler. With one big winner, there must be hundreds of thousand losers who foot the bill.
When you are young and single, and have an ambition to go for big return legally, my advice is to go ahead. As usual, I have to qualify that advice: don't drag your parents' property or life savings to fulfill your ambition. If you sink, don't let them drown with you.
Whether you are going to start a business, development, buying a house, do kick off with a small one first. Patience is a virtue. Once you understand all the ins and outs, go one step further; not with all the winnings you get from the previous one, but with some kept away as your reward of success, or as backup fund.
"Young and single" is a preferred prerequisite. However, you have no one to support and have plenty of spare cash, even when you are in your 70's, go ahead to fulfill your life long ambition. Colonel Sanders sold his KFC name at 73.
It is like a toddler learning to walk. He will fall, but as long he is not injured, with determination and support of the parents or people that love him, he will try again and again and eventually walk and run on his own.
When you are young with people behind supporting and encouraging you, you are unlikely to fail, unless you play your own rules and ignore the well tested ones.
You should not take that gamble if you have a family to look after, and burden with financial commitment. No matter what the circumstance is, even your favourite bank offers you very low interest rate loan, you must think twice; you must weigh out the pros and cons, including other factors like family togetherness, psychological impact on the family, effectiveness in doing other things, your employment if you are currently "moonlighting", etc.
If you really want to start, may be as the linked article suggests, a granny flat can be a good project. Most are cheaper than a block of land. However, if do have enough saving for the deposit of a piece of land, invest in it. You do need to understand the surround before splashing your cash.
With land you can do a lot with it. You may keep it for capital growth. If it is a large block, you can learn to sub-divide it. You can experience the joy and pain of getting a house built on it, or become a owner builder to build the house. If more than one dwellings can fit onto the block, you are talking about the birth of a new developer - YOU!
"Sitting" on a block of land for capital growth can be more profitable proportionately than developing on it. It is relatively stress free!
Thank you for reading.
Commenting on “How to become a property developer”
https://www.domain.com.au/advice/how-to-become-a-property-developer-20171219-h030qk/
The higher the risk, the greater the return. Many people want to make "big" money in real estate, and lure into becoming property developers. Are there many successful ones? Are there more failed developers than successful ones?
It is the pessimistic Sin Fong talking again. Out of the blue, news media publish news of an ordinary person just won mega-million dollars lottery. Many readers write in commenting how lucky the winner is, and how deserving the windfall goes to the battler. With one big winner, there must be hundreds of thousand losers who foot the bill.
When you are young and single, and have an ambition to go for big return legally, my advice is to go ahead. As usual, I have to qualify that advice: don't drag your parents' property or life savings to fulfill your ambition. If you sink, don't let them drown with you.
Whether you are going to start a business, development, buying a house, do kick off with a small one first. Patience is a virtue. Once you understand all the ins and outs, go one step further; not with all the winnings you get from the previous one, but with some kept away as your reward of success, or as backup fund.
"Young and single" is a preferred prerequisite. However, you have no one to support and have plenty of spare cash, even when you are in your 70's, go ahead to fulfill your life long ambition. Colonel Sanders sold his KFC name at 73.
It is like a toddler learning to walk. He will fall, but as long he is not injured, with determination and support of the parents or people that love him, he will try again and again and eventually walk and run on his own.
When you are young with people behind supporting and encouraging you, you are unlikely to fail, unless you play your own rules and ignore the well tested ones.
You should not take that gamble if you have a family to look after, and burden with financial commitment. No matter what the circumstance is, even your favourite bank offers you very low interest rate loan, you must think twice; you must weigh out the pros and cons, including other factors like family togetherness, psychological impact on the family, effectiveness in doing other things, your employment if you are currently "moonlighting", etc.
If you really want to start, may be as the linked article suggests, a granny flat can be a good project. Most are cheaper than a block of land. However, if do have enough saving for the deposit of a piece of land, invest in it. You do need to understand the surround before splashing your cash.
With land you can do a lot with it. You may keep it for capital growth. If it is a large block, you can learn to sub-divide it. You can experience the joy and pain of getting a house built on it, or become a owner builder to build the house. If more than one dwellings can fit onto the block, you are talking about the birth of a new developer - YOU!
"Sitting" on a block of land for capital growth can be more profitable proportionately than developing on it. It is relatively stress free!
Thank you for reading.
