OFFRE D'UNE DURÉE LIMITÉE | Obtenez 3 mois à 0.99 $ par mois

14.95 $/mois par la suite. Des conditions s'appliquent.
Page de couverture de Why You Don’t Always Need to Build

Why You Don’t Always Need to Build

Why You Don’t Always Need to Build

Écouter gratuitement

Voir les détails du balado

À propos de cet audio

 In this episode, Jonathan and Kieron debunk the common myth that being a property developer requires you to actually build houses. They break down the full development lifecycle, from sourcing land to securing planning permission, and explain why ‘building’ is actually just one of several potential exit strategies. The duo discuss the benefits of exiting early, such as selling sites with planning permission to reduce risk, and why the old ‘rule of thirds’ for calculating profit no longer applies in today’s market. KEY TAKEAWAYS Construction is often the last stage of development, and you do not have to undertake it to be successful; many developers specialise solely in sourcing land and achieving ‘planning gain’ before selling the site. While building out a site typically offers the highest profit margin, it also carries the most risk regarding construction costs and market changes. Selling a site with planning permission is a ‘shorter game’ that allows you to realise profit sooner with less exposure. The old rule of thumb (33% land cost, 33% build cost, 33% profit) is outdated. A more realistic breakdown today is often 20% purchase price, 50% build costs, 20% profit, and 10% finance/anomalies. When working with investors, treat the planning approval stage as a checkpoint. This gives everyone the option to decide whether to sell the site and take the profit now or proceed to the construction phase. Successful development requires the ability to pivot. You might intend to build, but personal circumstances or market conditions might make selling the site (‘flipping’) a smarter financial move at the time. BEST MOMENTS "In reality, building is often the last stage in property development. There are multiple exits before you actually get to start building." "Some people just specialise as property developers in planning gain. They find a piece of land, sort out the planning, and then sell it on to another developer." "Building is ultimately just one method of extracting the value from the site." "A bird in the hand is better than two in the bush. Cash in the hand is better than cash in the land." "People used to do the whole 'third, third, third'. We don't do that anymore. It's probably a bottom line 20% conservative on your profit." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
Pas encore de commentaire