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LETS GET DOWN TO BUSINESS.

Question :
 Hi There,I just turned 29 own small residential building company. We started in 2016. Covid has obviously effected us directly, although I am determined and optimistic about our future. In the last 8 months we have grown and developed into a strong small bussiness. I had made some bad bussiness decisions starting out, at this stage I stand confident in both myself and my crews on site.I am currently about to purchase my first investment property (first property ever) and transition my career to property development.10 years ago I had a goal to one day becomeA successful property developer. I decided that I would follow these steps to obtain that goal.1)Become a qualified builder 2)Project manage and run sites for a number of years 3)Start a residential construction company 4)Purchase first investment property and build with my own company keeping cost down as much as possible.I am about to enter goal 4, so my question to you would be…In the current climate, what would be your advice on planning and risks with moving from goal 3 to 4?  How would i find like minded people to invest with and pitch for the future to help my bussiness grow? I understand there is a global recession looming but I choose not to let this effect me and pick my shots wisely! Thanks reading and taking the time! Stay safe and look forward to hearing from you! Cheers 

Question submitted 11/04/20 @ 06:34am
Industry: Business Growth
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  • Firstly, well done on your career trajectory to date. It’s impressive that at 29 you’re at the stage you’re at. I don’t have experience of the building industry, however I would advise you look objectively at your financial projections specifically at the projected demand for properties (affected by people’s ability to service mortgages or pay for rent due to their own employment being at risk) the cost of credit and willingness for banks to lend in the current climate. At The Icehouse, we have a group of advisors with specialist knowledge. Alternatively go to your trusted accountant for basic financial advice.

    Hi Nari – Having personally been down the same path you’re travelling, I would encourage you to stay really really close to what’s happening in the market – not just demand, supply and pricing, but the more structural elements influencing the market right now. This is a fascinating time for the industry, both residential and commercial, and a lot is in play. Wholesale money markets, central bank policy, price and demand relativity of other asset classes, government tax potential etc etc. Disruption births opportunity as you know, so if you’re not already, get specialist advice as Gavin says, and scrub up on your reading. There’s lots to read online, and plenty of historical cycles to reference as useful case studies. The next c. 6 months will be particularly interesting and will significantly impact your success rate in moving to your goal 4.
    Go well
    Melissa

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