Ep 234 - From Interest Rates to Inspiration- Making Money in Any Market

Happy New Year and welcome to 2026! As we kick off a brand new year, the question on every property developer's mind is: "How do we make money in this market?" In this episode of the Property Mastermind Podcast, Hilary and Bob look ahead to the opportunities and challenges facing developers in 2026. They dissect the "Big Three" factors that impact your bottom line: interest rates, build costs, and supply and demand. Bob explains why interest rate fluctuations matter less to developers than you might think (and why 23% rates didn't stop him making a profit in the past), while Hilary explores the critical role of public sentiment and confidence. Whether you are worried about rising construction costs or wondering if Victoria is about to bounce back, this episode gives you the insights to stay ahead of the curve. Links Attend the 3 Day Workshop on the Gold Coast: https://bit.ly/3UmDhjo  Chat to Hilary about the current investment opportunity we have: https://link.propertymastermind.com.au/book-a-call Join the Ultra-Urban Database for upcoming investment opportunities: https://bit.ly/45sqO2F Head on over to our website to find out more about our workshop and education options: Our Website Connect with handovers.com: https://handovers.com/ Episode Highlights01:36 – Bob’s Tip of the Week: A painful lesson in sun safety—when you think you've put on enough zinc, put on some more! 04:36 – The Market Movers: Bob identifies the three biggest factors impacting developers: Supply and Demand, Build Costs, and Interest Rates. 06:28 – Macro Impact: How the mining boom (and bust) in Western Australia proved that local economic drivers can override national trends. 12:14 – The "Double Whammy": Reflecting on the tough period where rising interest rates collided with skyrocketing post-COVID build costs—and why 2026 looks different. 13:10 – Interest Rate Reality: Why a 1-2% interest rate rise has a minimal impact on a short-term development feasibility compared to the massive impact of sale price growth. 17:54 – Feasibility Rules: Bob’s golden rule: Do your feasibility on today’s numbers, not on what you hope the market will do tomorrow. 22:51 – Finance Outlook: Why there is plenty of money available in the commercial non-bank sector for profitable deals, even if retail banks are tight. 26:22 – 2026 Predictions: Bob predicts a "better than average" year, with stable build cost growth (approx. 4%) and strong opportunities in Victoria and South East Queensland. 28:33 – The Oversupply Myth: Why buying in an oversupplied market can actually be a smart move—because by the time you finish building in two years, the supply will likely have dried up.See omnystudio.com/listener for privacy information.