In this episode, we are once again joined by James Parker from Stonewood Canterbury to discuss the economics of being a developer, and the costs that are associated with building brand new residential properties in Canterbury.
James shares that in a place like Selwyn District, 32% of the cost associated with a $550k property would go to land and then there would be an additional $2000 per square meter of build costs. On top of that developers also need to pay for their own staff costs and well as finance and interest costs. The returns can be attractive, but it comes with significant risk as well.
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The Property Academy Podcast