Ep 251 - When Small Developments Beat Big Ones

When you are starting in property development, it is easy to look at massive apartment blocks and multi-stage subdivisions and think that "bigger is always better." But what if small, fast projects are actually the secret to a safer and more profitable portfolio? In this rapid-fire episode of the Property Mastermind Podcast, hosts Hilary Saxton and Bob Anderson unpack exactly when and why small developments beat big ones. They discuss the undeniable advantages of smaller projects, including lower capital requirements, reduced risk, and the ability to leverage fast-track council approvals. Bob shares an incredible story of a mentoring couple who flipped a small site with a development permit for a $600,000 profit without even picking up a hammer. From understanding the true meaning of "highest and best use" to avoiding the trap of squeezing too many townhouses onto a tiny block, this episode is packed with rapid-fire wisdom for developers at every level. 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 Highlights01:45 - The $600k Flip: Bob shares the ultimate small development success story—a couple who secured an option on a property, obtained a development permit, and flipped the site for a massive $600,000 profit without ever starting construction. 03:23 - The Capital Trap: Why going "bigger too early" is a dangerous game. Bob explains why putting your very last cent into a deal leaves you vulnerable when inevitable construction blowouts occur. 04:06 - The Need for Speed: How smaller developments leverage fast-track approval systems (like CDCs in NSW or RiskSmart in QLD) to complete projects in 16 months instead of 24, massively improving your return on investment. 05:41 - The Beginner's Baseline: Why a novice developer learns exactly the same lessons building three townhouses as they do building nine, but with a fraction of the financial risk. 07:20 - Highest vs. Best Use: Why the "highest" use of a site (maximum density) is rarely the "best" or most profitable use if it doesn't align with local market demand. 09:48 - The Overcrowding Mistake: The danger of squeezing five poorly-designed townhouses onto a site meant for four. Buyers will punish poky floor plans and tiny living spaces, making the four-townhouse option far more profitable. 16:43 - Old-School Wisdom: Bob shares a piece of advice from an old Italian builder: "You never go broke making a profit." If a simple, highly profitable deal is staring you in the face, take it.19:27 - Scaling Up: Why an experienced developer would rather build one 12-pack of townhouses instead of three 4-packs simultaneously. It comes down to the massive savings in project management time and economies of scale. See omnystudio.com/listener for privacy information.