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Australian Residential Property Development for Investors by Ron Forlee

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CHAPTER 7 Development economics

An important goal for most developers is to find ways to save costs and maximise profits in their developments. Unfortunately this is the only goal for some developers, as is evident in some appalling developments in our cities. These developers approach the task with a philosophy of ‘cost cutting' as opposed to ‘cost-effective saving'. Successful developers approach cost saving intelligently. They advise their design team to analyse the economics of the structure without losing the concept and ambience that would make the development sell.

Intelligent cost saving can be achieved through an understanding of property development economics. Traditionally, a developer client approaches an architect to prepare ...

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