Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Paying Yourself as a Developer

Notify me of new replies via email
Gear | 23 Mar 2017, 09:10 AM Agree 0
I am new to development, and will soon begin my first project (simple dual occupancy).

I know it is early days, but I plan to become a property developer full time, as soon as possible.

My questions is, as there is a long period between actually getting your hands on the funds for a completed development, what are the ways that property developers get paid:

Do they:

- Pay themselves from retained profits from previous projects
- Pay themselves as a project manager etc of the project through the borrowed funds for the project
- Have another source of income

If anyone could give some advice around this, and transitioning to become a full time property developer, that would be appreciated.
  • in the know | 28 Jun 2017, 11:32 PM Agree 0
    if you cannot answer this question already i recommend not becoming a property developer.

  • Daztrac | 30 Jun 2017, 04:27 PM Agree 0
    I reckon you've pretty much answered it yourself.
    I don't believe there's any hard and fast rules regarding this.
    If you set yourself up as a company and do the sums, you could take a wage for running the project if it's viable.
    Considering it's not a large scale project, having a job to support yourself while you get up and going is probably a good idea.
    Getting some investment properties behind you providing cashflow would be a good idea if you haven't already.
    There are all sorts of ways you can do it, just think about it and get creative.
    You will only learn by making mistakes, hopefully they are only small ones!!
Post a reply