http://propertyplannerbuyerandprofessor.com.au/ In this week's episode of the Property Planner, Buyer and Professor Podcast, the team analyse the important considerations for completing a successful subdivision and the risks that small time developers need to be aware of. Dave, Cate and Pete take you through: 1. The first step - planning Ask yourself how does this step fit in with your overall property plan? Start with the big picture and work out what stage of life is the best time for you to complete this project. Is it an acceptable risk to take on now? 2. Buying well - a critical requirement to success Selecting the right property and the right block will either make or break your plans. It could be the difference between make a profit or ending up with a vacant block and a hole in your wallet. 3 Know your market Is there demand for smaller blocks of land with townhouses in the location that you're purchasing in? Who is your target buyer and how will the property cater to their desires and price point? And is the project likely to be as profitable as other, similar priced alternatives? 4 Have an in-depth understanding of council plans Even if your plan is to subdivide, sell and leave the building project up to the next purchaser, the council still wants to see the plans. If you want to get three townhouses onto a block, be prepared to demonstrate the feasibility of your plans. Each council has their own guidelines, so it is important to understand the sensitivities, likely steps and local town planner's approach at every step of your process. In particular, it helps to get to know who you will be dealing with. 5 Consider all costs From transaction costs, holding costs, tax obligations and the value of your own time - ensure you have an accurate understanding of the true projected cost of your project. Have you modelled what your budget will look like if a few key costs vary by 5%? And will you still make a profit? 6 Obtaining finance for developments Development finance is not as straight forward as getting a loan for a purchase. There are many additional hoops to jump through before you get the lenders tick of approval. 7 Common mistakes and how to avoid them Just because your neighbour did a subdivision 5 years ago, doesn't mean you are bound for success. We outline the common mistakes, misconceptions and unwitting risks we see time and time again, so you can put your best foot forward on your development journey. 8 Getting educated One of the most critical factors to success is to 'know your stuff' and learn from the experts. We provide a bonanza of resources in our show notes for you to start learning and work out if subdivision and development is the right move for you. 9. And of course, our 'gold nuggets' Visit the show notes - https://bit.ly/2ZVJJSo