Ep 347: Is property development an effective way to build wealth?

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Ep 347: Is property development an effective way to build wealth?
Mar 12, 2025 Episode 347
Stuart Wemyss

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In this episode, we take a deep dive into property development as a wealth-building strategy. Using real-life case studies, we explore whether small-scale property development offers better returns than traditional buy-and-hold investing.

🔹 Does developing property really pay off?
 Stuart analyzes a 20-year property development case study, showing how one investor turned $270,000 into $1.4 million—a 14.8% after-tax IRR. But does this kind of return hold up in today’s market? Rising land and construction costs have changed the game, making high-IRR developments harder to achieve.

🔹 Key insights from the numbers:
 âœ… How land appreciation and construction costs impact development margins
 âœ… Why higher capital contributions may lead to greater wealth accumulation
 âœ… The realistic return expectations for developers in today’s market
 âœ… When buy-and-hold property investing could be a better long-term strategy

💡 Should you invest in property development?
 Stuart breaks down whether small-scale development is worth the risk—or if your money is better off in a well-selected, investment-grade property with a simpler buy-and-hold strategy.

If you're considering developing property, this episode is a must-listen! Tune in now for a data-driven breakdown of what works—and what doesn’t.

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