Your first Queensland property development lives or dies on the feasibility. Get the site, the numbers, and the builder right and you can create real, tax-effective wealth. Get any one of them wrong and you eat the loss out of your own equity.
What is a first property development?
For most beginners it is a small in-fill project. A duplex on a large corner block, a knock-down-rebuild with a granny flat, or a two lot subdivision. Small enough to finance without a syndicate, big enough to deliver a meaningful uplift.
How do you know if a site works?
Start with the town planning scheme for the local council (Logan, Brisbane, or Gold Coast on our patch). Confirm zoning, minimum lot size, setbacks, height, and site cover. Then run a back-of-envelope feasibility: land cost + construction + soft costs + holding + selling costs vs realistic gross realisation. If your margin is under 20 per cent on cost, it is not worth the risk.
How does development finance work?
Small residential developments (up to about $2m end value) can often be funded with a construction loan through a mainstream bank at around 70 to 80 per cent of total costs. Beyond that you move into commercial construction finance, private lenders, or joint ventures. Get a broker who specialises in dev finance before you buy the site.
What is the DA process?
DA stands for Development Application. It is the formal approval you lodge with council to change use, subdivide, or build something that is not "self-assessable" under the scheme. Timelines vary but budget six months from lodgement to approval for a small residential DA in Logan or Brisbane, longer for anything contested.
How do you pick a builder?
Fixed price contract, current QBCC licence in the right class, insurance, and recent completed jobs you can visit. Cheapest quote is almost never the right choice. A builder who is $20k more but delivers on time saves you interest, keeps the sale window open, and does not vanish mid-build.
What are the biggest risks?
Cost blowouts (rectifications, variations, materials). Programme blowouts (weather, trades, council). Interest rate movements during the build. A soft end market when you list. Buffer 10 per cent contingency on cost and a 5 per cent buffer on end value, and stress test the deal at higher rates before you commit.
When do you sell?
For most first developments, off the plan pre-sales de-risk the deal and can support finance. If your feasibility works better with completed stock sold on market, list the moment practical completion is close so settlements line up with certificate of occupancy.
Important note
This article is general information only, not legal advice. Queensland property law changes and every situation is different. Before you act, speak with a qualified solicitor or licensed conveyancer, and verify current requirements with the relevant Queensland Government source (Queensland Government, Queensland Law Society, Office of Fair Trading, or the QBCC where applicable).
Where to from here
Thinking of developing or selling a completed project? Let's talk strategy and end value, or book a proper appraisal so we can map the numbers together. Curious what a finished product might be worth today? Jai will give you an instant estimate.
Frequently asked questions
Thinking of selling in Logan Reserve?
Get a free appraisal from Junaid Ally. Call 0410 218 499 or visit junaidally.com/appraisal.
