Most failed developments were lost on the day the site was bought. Episode 85 of Finance This, Property That brings in town planner Mark Kierpal of Urbicus to walk through the three mistakes that sink small developments: the wrong site, underestimated approvals and a product the market never wanted.
If you are considering a development site, a subdivision or the next stage of a portfolio, this is the working session to hear before anything is signed. Structure, strategy and the right advice consistently outperform guesswork, and in development the guesswork is measured in six figures.
Mistake one: buying the wrong site
Cheap blocks are cheap for reasons: overlays, servicing constraints, access problems or planning rules that quietly cap what the site can carry. Mark's core message is sequencing: the town planner belongs before the contract, not after settlement. A site that should never have been bought cannot be rescued by design.
Mistake two: underestimating council approvals
Feasibilities are usually built on best-case timelines. Approvals rarely run on them. The conversation covers what approvals actually cost, how long they genuinely take, the conditions that arrive attached and the holding costs that accumulate while a project waits. The margin many projects lose was never in the build. It evaporated in the approval queue.
Mistake three: designing the wrong product
The maximum the site allows and the product the market wants are different numbers. The episode's case studies show projects where less yield produced more profit: fewer dwellings, better matched to local demand, sold faster at stronger prices. Design that ignores the market converts paper yield into unsold stock and interest bills.
Before you sign anything
The episode closes with a blunt pre-contract checklist: speak to your finance strategist about the funding structure and staging, speak to a town planner about what the site genuinely supports and understand your strategy for the project before the deposit moves. The financing side of the same journey is covered in Development Finance: Land, Build, Exit.
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Key questions this episode answers
What is the biggest mistake when buying a development site?
Buying the wrong site. Planning constraints, servicing issues and overlays can make the intended project unviable before it starts. Bring the town planner in before the contract, not after.
Why do developers underestimate council approvals?
Because feasibilities run on best-case assumptions while approvals run on council timelines. Holding costs during a slow approval can consume the project's margin.
What does designing for the market mean?
Building what the local buyer or tenant actually wants rather than the maximum the site allows. The episode's case studies show less yield producing more profit.
Who should you speak to before signing?
A finance strategist on funding structure and staging, a town planner on what the site supports and your own strategy on what the project is for. Sign after those conversations, not before.
Who is the guest on episode 85?
Mark Kierpal of Urbicus, town planning experts in approvals, feasibility and site outcomes.
The takeaway
Development rewards preparation and punishes optimism. The site, the approvals and the product each get one chance to be right, and all three are decided before the first slab is poured. Buy the site the plan supports, not the plan the site forces on you.
The information discussed in this episode is general in nature and does not take your individual financial circumstances into account. Consider whether it is appropriate for your position before acting on it.