From my limited experience as a relatively new property developer thought I would put together some common mistakes that I see happening with wannabe developers. Feel free to add of course. Buying in the wrong area Secondary location ie busy roads?? dependent on what you are building Areas with poor infrastructure/transport links. Paying too much for Finance Not sourcing correct loan can be a costly one. Structure Not buying in the right structure to minimise/reduce tax. Trying to save money and not employing the correct professionals. Building the wrong product Not building what a specific area demands, for example if the demographics are baby boomers, and you are building town houses, make sure the master bedroom and ensuite is downstairs. Building Costs Paying too much for building costs, there are huge discrepancies with this one especially in a rising market. Important to shop it and compare apples with apples. Cost Cutting on quality/specifications Even if your budget is small, you need to get the specifications right, in other words what buyers want in this area/suburb. Going overboard On the flip side.....don't over design and over specify, it will cost you dearly and you wont get the money back at the end. Getting way too personal Inflicting your taste on a project alienates buyers. Neutral does not mean boring, don't reinvent the wheel, find out what the successful developers are doing in the area/suburb and copy their model Market Conditions Developing in strong markets/rising markets will be far easier to make money and reduce risk. Greed If selling development, be realistic with prices, market dictates value of the property not you. This is one easy way to shoot yourself in the foot.