Should I undertake my own development or join a development syndicate?
Whether developing yourself or through a syndicate, when done right there is no question that the end result can be highly lucrative.
More often than not, though, aspirational developers only hear about the big profits on offer and don’t understand the amount of time and effort required to complete a residential property development themselves.
As such, if you want to undertake a development on your own, it’s advised to engage a project manager, who can oversee the build on your behalf.
A good project manager will be able to guide you through the entire process, from designs and approvals, to selecting a builder and tendering work, as well as monitoring the progress of the project to completion.
This option allows you to have a high degree of control over the project, while having peace of mind and conviction in your decisions as you’re being advised by a professional.
Comparatively, a development syndicate is a much more passive means of property development.
Investors have little input into the process as the syndicator manages the project and has final say on all aspects of the development. That includes the final designs and fittings and fixtures to choosing the builder and trades etc.
Investors are kept up to date with regular progress reports, but it’s as simple as investing your funds and waiting for the syndicator to hand back the profits at the end of the project.
If you ask anyone who has completed a property development themselves, they’ll confirm that it’s essentially a full-time job, as you need to manage a vast array of consultants and the builder through the entire process.
This is why engaging a project manager to help you or choosing to invest in a development syndicate can be a much wiser option than developing on your own.