Are you enthusiastic about the process of purchasing and selling a property? If yes, consider a career as a property developer.
Property development is a financially rewarding and demanding industry. It has more than you could imagine, including construction, urban planning, law, finance, architecture, considerable research, and more responsibilities.
Although having experience in real estate can be beneficial to becoming a property developer, there is no rulebook.
So, if you want to be a part of this industry, it is vital to understand every aspect of it. Let's learn how to become a property developer in Australia, the steps you need to take, courses and qualifications, how to get a license, their salary, and more.
1. What Does A Property Developer Do?
Property developers are entrepreneurs who oversee property development and redevelopment projects. They plan and control projects ranging from buying land to building property.
Most property developers work on commercial projects such as residential buildings, offices, retail spaces, and leisure and travel developments. From investigation to identifying land and determining the viability and profitability of a project, a property dealer is responsible for all actions.
The property developer also examines and decides the most profitable use for the land or existing property. Further, they collaborate with architects, building specialists and local councils to create a project plan that includes design, budget, and timeline.
A good property developer is aware of financial risks and oversees all phases of development to ensure the quality of the final product.
2. Major Duties and Tasks of a Property Developer
Below are the typical responsibilities:
Ability to investigate and locate new real estate development possibilities.
Decide on the most lucrative use for commercial or residential property.
Designing home plans and finances and negotiating the purchase of land or property.
Coordinating with architects, builders, and authorities on new projects.
Acquiring planning licences and permissions for construction projects.
Organising or locating money to finance construction projects.
Guaranteeing quality control and monitoring property construction.
Carrying out property valuations.
Promoting and selling existing or new properties.
3. Skills Required To Become A Property Developer in Australia
Every profession needs specific skills to climb the ladder of success, and the property development field is no exception.
The following are the critical skills a property developer should have:
4. What Qualifications Do You Need To Be A Property Developer?
You usually don't require any formal qualification to become a Property Developer. However, it is essential to have adequate knowledge of property development and capital to pursue a Property Developer profession in Australia.
Completing a property or real estate course is recommended to develop a broader understanding of the property development process with the required practical skills.
Here are quick steps to kickstart your career in property development:
Undertake a real estate, property, or business qualification such as a (CPP41419) Certificate IV in Real Estate Practice or a Bachelor of Property and Real Estate. Both these qualifications can help enhance your business insight and understanding of property development.
To build experience, perform your research, begin with a small construction project, and build your capital to buy a property. With expertise, progress your learning by developing and supervising more significant projects. Alternatively, join an established real estate company to build industry experience in property development or construction. The on-the-job training will give you the confidence to venture into the sector independently.
You may consider advancing your property development career by completing a relevant postgraduate degree, such as a Master of Property Investment and Development.
5. Steps To Become a Property Developer in Australia
Real estate development may be a challenging but lucrative profession. As a property developer, your project may transform an undeveloped area into a high-rise office skyscraper or luxury boutique flat.
Education and training are required to enter the property development industry, which takes time. If you have the desire and vision to become a Property Developer, here are some steps you may take to get started:
Step 1: Earn A Certificate IV
Certificate IV in property development provides a solid grasp of some of the essential principles in property development, such as assessing cost and value, performing market research, and acquiring and managing money.
Step 2: Research Real Estate Development
The next step is to get a bachelor's degree in property, real estate, or development. This property developer degree can open doors to many career opportunities for you. There are several courses available, so do your homework before applying.
Building construction, commercial valuation, investment and finance are some areas of schooling that will benefit you.
Conduct independent research, such as reading books on property development, participating in forums, and studying successful Property Developers online to obtain industry tips and techniques.
Step 3: Conduct Research and Identify
Now that you've finished your studies and have a general understanding of what goes into property development, it's time to pick your first project. You should start with a modest, manageable task.
You'll need to decide on a budget and whether you want to build a new structure, renovate an existing one, or acquire a plot of land and subdivide it.
To be successful in your first attempt, you will need to undertake comprehensive research on the housing market, locations, and building expenses. You must plan on devoting a significant amount of time to the decision process.
Step 4: Save Some Money
Raising funds for the first project is likely the most challenging and intimidating phase for a novice Property Developer.
There are several approaches you should consider. Many aspiring developers begin by borrowing money from an existing mortgage on their property despite the apparent risks.
Instead, seeking a loan from a bank or another lender is suggested. You can try to persuade some investors to fund your business, but this is only easy once you have a proven track record.
6. Property Developer Courses in Australia
Property developer courses can help you polish your skills, learn more about property development, and grow your career. Before you start, enrolling in a short course is the best choice.
You can find a wide range of property developer courses in several states through TAFE and the Property Council Academy. There are also in-depth courses available that focus on property development.
TAFE offers everything from short courses through Certificate IV in Real Estate Practice, the Diploma of Property Services (Agency Management), the Advanced Diploma of Conveyancing, and the Bachelor of Property Valuation.
On the other hand, Property Council Academy offers various courses ranging from Foundation courses, Industry Diplomas, Specialist Courses, Launch-Pad courses, In-house training and Digital Delivery. For more details about these courses, visit the website.
7. How To Get A Property Developer License?
You must finish Certificate IV in Real Estate Practice core modules to apply for a registration certificate as an assistant property developer in Australia (also known as a real estate agent salesperson). This is the first step in becoming a real estate and property agent.
To become a licenced property developer in Australia, you must complete Certificate IV in Real Estate Practice and the 12-month work experience requirement established by NSW Fair Trading.
To work as a professional property developer in Australia, you should acquire a Licensee in Charge (class 1) and a Diploma in Property Services (Agency Management). Besides this, you must have at least two years of industry experience and have fulfilled the work experience standards stipulated by NSW Fair Trading.
All assistant agents, class 1 agents, and class 2 agents must undergo yearly continuing professional development. There are presently three types of licences: real estate agent, stock and station agent, and strata agent.
8. How To Become A Property Developer With No Money?
The majority of budding developers need more funds to get started. If you are one of them, the good news is even if you don't have money, you can still become a property developer in Australia. Let's understand how.
Research and Acquire Knowledge
You must conduct thorough research before making a decision. Go online, chat with agents, and drive around the neighbourhood. Discover what consumers want, what sells, what doesn't, and who your target market is (for example, families, retirees, and younger couples).
This will assist you in determining your pricing point and doing a feasibility study on the land. The majority of your expenses are simple to calculate. Still, the final sale price will vary greatly depending on where you live.
After you've gained the essential knowledge, you'll need to develop a plan. You will only get far in any career if you have a plan. Consider your abilities, skills, and experience to get started. What services do you provide to people? Who will be your target market?
Having a business plan is also critical, whether you're operating alone or with a team. What do you hope to accomplish? What are your long- and short-term objectives? You'll also need to establish connections. Also, you must ensure that you have a backup plan.
Preparing for the worst may significantly impact you, especially in the early stages of your business or career.
Look For Funding Options
Funding is required to run a business. So, how can you become a property developer in Australia if you don't have any money? Is it possible? Yes. You won't be spending your money, but you must find other funding sources. Where did you receive the money?
You'll likely discover someone eager to fund your business in your contacts and networks. Your supporting friends and family should be the first people you approach. For people to trust you with their money, you'll need to show them what they will get.
If you have a well-thought-out company strategy, it will be simpler to persuade them. Fundraising is another method of funding.
Become A Personal Assistant
Suppose you still need to get ready to become a property developer. In that case, consider working as an assistant with an established property developer. It will help you learn more about property development and give you helpful information, allowing you to acquire the required skills.
Of course, if you want to work in property development, you'll need a solid grasp of the industry. Look for a position that will allow you to gain hands-on experience.
Start Slow With Small Projects
The initial projects and deals you'll be in charge of are among the most essential. Accepting small projects first is an excellent place to start. While high-reward opportunities may be tempting, they pursue high-risk; novices will profit more by beginning with more straightforward, low-risk projects.
Although you won't make millions from it, you will not be losing millions as well. You can take on larger projects and deals as you develop more expertise and confidence in your abilities.
Always allow enough time for research and analysis, no matter how large or small a contract or project is.
9. How Much Do Property Developers Make in Australia?
The average gross compensation for a property developer in Australia is $92,725 per year or $45.25 per hour.
They also receive an average bonus of $4,284. Property developer salary Australia estimates are based on salary survey data from businesses and anonymous employees.
The average income for an entry-level property developer (1-3 years of experience) is $66,044. On the other hand, a senior-level property developer (8+ years of experience) gets an average pay of $114,893.
10. Exciting Careers For Property Developer Courses Graduates
The following are the exciting careers for graduates in Property Developer courses in Australia:
Property Development Manager
Assistant sales manager
Property Portfolio Officer
To become a property developer in Australia, you must have the desire, technical competence, and real estate knowledge.
However, if you have a few years of real estate experience, you have already begun to lay the groundwork for success. But if you don't, you can find many property developer courses in Australia.
11. Frequently Asked Questions (FAQs)
Is Property Development a Good Career?
Yes. Property development in Australia is a diverse and rewarding industry where you will find a range of careers in property development.
Property Developer – around AU$ 162,300 per year.
Real Estate Analyst –around AU$ 97,000 per year.
Acquisition Manager - around AU$ 189,000 per year. With experience, you may earn over AU$ 227,500 per year.
Real Estate Asset Manager – around AU$ 66,291 per year.
Property Manager – around $55,294 per year
Development Director - between AU$302,000 and AU$332,300 per year.
Risk Executive - around AU$233,350 per year.
Urban Designer – between AU$128,490 and AU$169,860 per year.
Urban Planner - between AU$118,163 and AU$140,300 per year.
Property Valuer – between AU$125,500 and AU$155,100 per year.
Additionally, entering a Property Developer's role is easy as you don't need a formal qualification to pursue this profession.
If you are a confident communicator with strong commercial acumen, a canny eye for good deals, and good negotiation skills, then a career as a property developer could be ideal for you.
Who Is The Largest Property Developer in Australia?
Based on the Top Home Builders list 2020–21 released by the Housing Industry Association, Metricon occupies the top spot across Australia.
With 6,052 starts in 2020-21, the company topped the list with houses constructed across Queensland, New South Wales, Victoria, and South Australia.
Is Being a Property Developer Worth It?
Property development is a thriving sector in Australia. Pursuing a role in this field can be lucrative and rewarding. Many complex construction projects require skilled property developers who can meet the demands of this continuously evolving industry.
Furthermore, the government's homebuilder scheme, rising consumer desire to live in new homes away from highly-populated areas, lower home loan interest rates, etc., are some factors that drive the demand for property developers in Australia.
If you have a passion for properties, knowledge of how real estate works, solid financial capital, and project management skills, then a property developer profession can benefit you in numerous ways:
Property developers get to purchase a property at 15-20% below the market cost. They save on various expenses, including GST, marketing costs, developer's margin, agent's commission, and other costs contributing to the property price.
Property developers can use their expert knowledge and insights to find the right time to enter the market and make profits.
Purchasing new properties gives you the benefit of depreciation allowances, which provides you with a great "after-tax" return.
Despite buying at a substantially lower price (than the market cost), you can earn a rental return at the prevailing rate. Your rental yields will be more than those who bought the property at market value.
How To Become a Property Developer From Home?
There is no specific qualification requirement for a property developer, but completing a course in real estate, business, or a related field is beneficial.
The courses equip you with valuable knowledge about significant concepts in property development, such as market research, financial management, and cost and property valuation.
The best part of being a Property Developer is that you can complete most of the courses ONLINE at the convenience of your home.
Certificate IV in Real Estate Practice - TAFE Digital (Online), 1.5 years, Self-paced
Online Master of Property Development - UTS, two years (minimum)
How To Become a Property Developer in Sydney?
Completing the Bachelor of Property Economics at UTS can be a great start to a career in the global real estate industry.
Location: City campus
Lowest Selection Rank: 80.10
Course Duration: 3 years full-time or six years part-time
Assumed knowledge: Mathematics and any two units of English.
How To Become a Property Developer in NSW?
Consider the below study options to build the real-estate knowledge to overcome the real-life challenges of the dynamic Australian property market.
What Is The Difference Between a Builder and a Developer in Australia?
Property builders and developers work closely, and often, their roles overlap. Some of the fundamental differences in their working include:
A developer is responsible for funding the construction project and organises the licenses and promotion of the entire development. On the other hand, a builder constructs a project and oversees the whole construction. They work on behalf of the homeowner and are answerable to the developer.
A developer is in charge of the overall community development. At the same time, a home builder focuses on constructing new homes.
Developers are much more practically involved in the construction process. They have a more defined vision for the community. They will prepare the floor plans that builders use to design the layouts. Builders are the main people behind the physical construction of the house. They manage the entire construction team, including contractors, landscaping, and work crews, to bring the floor plan into reality.
Developers will find land for sale in multiple real estate markets and trade in them in phases. Once they have the land, they will hire a skilled builder to build the home. A home builder uses the architect's skills to create the house layout. They will arrange the necessary order of building supplies, line up the required tradespeople, and oversee the construction team. They will ensure the house is up to code and fulfils all requirements.
A developer deals with each stage of home construction, while a homebuilder deals with all the construction details.
How To Become a Property Developer with No Experience?
You don't need any prior experience in property development to enter this role. Most property developers gain experience through on-the-job training or working independently on small construction projects.
Here are the steps to pursue a Property Developer profession without experience:
Step 1: Study Property Development
To enter the role without experience, you must study a relevant course in real estate, business, or a relevant field.
These courses will give you the knowledge and skills concerning construction project management, cost and property valuation, quantity surveying, market research, property development, and financial management.
Completing these courses will give you a competitive edge and help you build a successful career in property with advanced career opportunities.
Step 2: Learn About Local Markets and Investment Strategies
Each real estate market involves a distinct set of risks and rewards, so you need different investment strategies to invest in each market.
For example, affordable markets tend to have higher risks and earning potential. An expensive market may offer more stable but a lower earning potential.
Thus, learning about different local markets will help you plan a strategy for your personal goals.
Step 3: Research and Identify Opportunities
Now that you know which properties to invest in, consider gaining hands-on exposure in this field by starting with a small, manageable project.
Research the local market to identify retail shops, apartments, industrial spaces, and offices for sale. Digital platforms could be an excellent place to find housing or commercial properties in your local area.
Decide whether you wish to build a new building, refurbish a current property or purchase a stretch of land to construct any properties.
Step 4: Create a Plan for Building Development
A building development plan forms the base for any housing or commercial development project. It outlines a construction project's scope, budget, and expected schedule.
Step 5: Arrange Capital for Financing Projects
From land purchase to hiring a construction team, including a builder, to marketing your project, you will need adequate capital in all stages of the construction project.
So, the next step is to raise capital to fund a new residential project or land purchases. Some of the fund-raising ways for your construction project are:
Take out a loan from a bank against collateral.
Find an investor to sponsor your project under a profit-sharing arrangement.
Step 6: Choose Your Working Methodology
With adequate theoretical knowledge of property development, it is time to immerse yourself in the real-world property market to gain practical industry experience.
You may work independently on a construction project or assemble a team that transforms your ideas and concepts into actual housing units or commercial complexes.
Your team may include property lawyers, architects, builders, civil engineers, tradespeople, and finishers.
Step 6: Commence Your Project
With sufficient funds and a reliable team, you can start construction or purchase land/ property to resell. Ensure you and your team follow local codes and regulations during construction.
Useful Links to Explore: