In this episode, Jonathan and Kieron look at the transition from flipping properties to engaging in larger-scale developments. They discuss the potential for greater profits, smarter tax strategies, and the overall benefits of development compared to traditional methods like flipping and BRRR (Buy, Refurbish, Rent, Refinance). The duo shares insights from their recent projects, including design reviews and site visits, while emphasising the importance of building a strong team and understanding the development process. KEY TAKEAWAYS While flips and BRRR are effective strategies for generating income and building portfolios, development offers greater profit potential, smarter tax advantages, and the ability to create an instant portfolio through multiple units. Development projects can benefit from lower VAT rates (0% for new builds and 5% for conversions) and preferential stamp duty rates for commercial properties, which can significantly enhance profit margins compared to residential flips and BRRR strategies. Engaging in development allows for economies of scale, where fixed costs such as professional fees and construction expenses can be spread across multiple units, reducing overall risk and increasing profitability. Success in property development relies heavily on assembling a competent team, including architects, planning consultants, and contractors. Building relationships with these professionals early in the process can facilitate smoother project execution. Continuous learning and seeking mentorship are crucial for navigating the complexities of property development. Engaging with experienced developers and participating in supportive communities can help avoid costly mistakes and accelerate growth in the field. BEST MOMENTS "Development often provides a bigger opportunity, stronger returns, smarter tax advantages. But ultimately, people do flips to make money; development allows you to do that from the very outset and build communities." "One of the misconceptions is the higher barriers to entry. Some developments can cost the same as residential houses, but you can create an instant portfolio." "The more units you can have, you can spread your fixed costs across all that, your QS architects, your professional fees." "Development isn't necessarily easier, but it can be far more rewarding in the long term, creating that instant portfolio." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.propertydevelopersplaybook.co.uk/
