Property development is becoming an increasingly lucrative way to capatalise on an investment. Whether you intend to subdivide land you currently own, or purchase a parcel with the intention to develop, it is important to plan ahead and recognise the key stages throughout the process. The following information has been prepared to help you recognise each stage and make informed decisions to assist your property intentions to turn into a reality.
What is property development and what are the benefits?
Property development is essentially the process of expanding the use of cultivated land. Property developers transform existing land and reorganise the site for a range of different uses. A once detached home may be demolished to make room for three townhouse, or the land may be reorganised to add a separate unit on the block. Whatever the change, the purpose of property development is to maximise the financial potential of the land.
Shifting the role from solely a property owner to a property developer has many potential benefits. Taking on the responsibility yourself has the ability to save you time, money and may allow you to add to your property portfolio faster. However, as a novice developer, it is easy to over capatalise or become overwhelmed with the many dimensions of the process.
How to begin in property development
Before you make the decision to embark on the property development journey, there are key people who will be able to offer you insight and support to make an informed decision:
- Development Expert: a trained property development expert is a vital ally to help you venture into property development. They are trained in all processes of development. A project manager can inform you of the process, advise you of the different regulations to adhere to, or help you manage the different stages of your development from permits through to sourcing architects and trades. Many elite experts also have a background in real estate to appraise the potential of a land parcel and forecast the likely value of your development before you begin.
- Financial Support: discussing your plans with your bank or financial institution will help ascertain whether your borrowing capacity will be enough to actualise your goal. Once your finances are in order, speaking with a financial advisor or strategist will help make sure the decision is right for you.