55 – How social change creates opportunity for property developers

Property Developer Podcast

Finding a niche market has always been an angle that can help you get an edge on the market, but how do you discover what that niche is and what they want? We will explore this question and more as we speak with second generation developer Jennifer Macquarie. Jennifer is from the Fountaindale Group and she has worked in residential property development for more than 25 years, after learning the business from her property developer father. Jennifer and her brother have expanded the family business and have so far completed more than 80 projects. Jennifer has tertiary qualifications in marketing and finance, and is also a licensed real estate agent, heading up the group's sales team. She certainly has an interesting story to tell, and I am sure you will pick up lots of gold nuggets from her experience so far. In this conversation we cover the importance of discovering niche markets, what its like working in a family business, women in property development and why the structure of a project makes such a big impact on its success. Keep an ear out for a growing market that Jennifer and me both feel is under-serviced. Property Developer Training If you are keen to get started today in learning about the property development process and what you need to do at each step, then jump into the Property Developer Training course (www.propertydevelopertraining.com). This is the program that Justin has put together to help you get quickly started in property developing. Complete the course at your own pace and in your own time, and learn the tips, trips and techniques that Justin has used in all his projects. Find out more at www.propertydevelopertraining.com Property Developer Quiz Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (www.propertydevelopertraining.com/quiz) and get a sense of where you are at… Lessons for property developers Here's a couple of things I took away from my conversation with Jennifer. 1. Understand the gap in the market that your stock is going to fill Jennifer explained how she is always looking at producing stock that fills a hole in the market, for example smaller units that may suit regional women coming out of relationships, if you can find these niches you should enjoy more success in selling your products, and it may help your business to grow and evolve. Keep your eyes and ears open for market feedback about gaps in what is being offered. 2. Boost your marketing budget when the market softens Having a marketing background has helped Jennifer evolve and adapt to different market conditions, and with the current softening of the markets she has ramped up her marketing budget. Jennifer mentioned that she is doing a lot of Facebook marketing and finding that females respond far better to her campaigns. So it may be worthwhile bumping up your marketing spend but being more targeted in how you approach your audience. 3. Be careful about over leveraging Jennifer shared her experience of scraping through the GFC and having to let staff go, and how many developers who over leveraged got caught out. It taught her a lesson to be conservative with the gearing on their projects, and she feels this has served them well. Jennifer also touched on the importance of getting your financial structure right and how much that can help the success of the project. Partnering with land owners has been another way that Jennifer has helped with de-risking projects and keeping the gearing low, so perhaps you could try something similar. Okay, if you enjoyed that chat with Jennifer then you may enjoy my chat with my old mentor Troy Harris in episode 45. Troy and me discuss many things about developing including some of the myths about being a developer. I'm sure you will enjoy Troy's story of going from toy shop owner to successful developer, so jump back to episode 45 for a listen.