Steps to Property Development Success

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.

Steps to Property Development Success

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.

Buying a Dual Occupancy project

How long is the development process?

Property development is rarely a ‘get rich quick’ venture. The majority of developments take at least 1 year, but usually they are closer to 2 to 4 years. The process of organising development plans, council permits and liaising with a host of different contractors is a timely process. Many potential developers are overwhelmed with the magnitude of considerations and the time required to organise their development. Many developers enlist the services of a project manager to overlook the day to day progress of their development as their connections with council administrators, trades and surveyors often speeds up the process.

After deciding that property development is right for you, what is the process?

  1. Property purchase: if you do not already own the land required to achieve the development you desire, it is important to locate the right parcel. A buyer’s advocate is a key player is land acquisition and will help you achieve your sale by negotiating the most favourable price and conditions. Premiere buyer advocates are also trained to investigate any restrictions on a property to ensure it suitable for its intended purpose.
  2. Planning: before making any changes to the land you must first receive council approval. Different permits will be required depending on whether there are existing dwellings, excavation is required, as well as permission to build the type of properties your propose.
  3. Drafting: your architect or draftsperson will help you design options to make the most use of your land. These drawings will require more than just the aesthetics; they will also need to include engineering reports. Depending on the value of the development, a quality surveyor may need to be employed. Your final drawings will need to be approved by the council and a specific permit will need to be obtained.
  4. Contracts: enlisting appropriate contractors is a vital step. Finding quality contractors is essential to make sure your development runs on schedule and within budget. Experience also plays a key role, and knowing the development history of potential candidates will help you make informed choices.
  5. Construction: the construction process is long and requires a lot of organisation to make sure every element of the development is running appropriately. Scheduling trades and surveyor at appropriate intervals is key, as well as staying on top of your budget to make sure each body is paid appropriately and on time.
  6. Finalisation: once the construction is complete, you need to apply for different titles for each of the properties. Titling your new properties is essential to be able to rent or sell the different dwellings.

More questions on dual occupancy projects check out our FAQ’s.

What to do now:

For an obligation-free conversation, contact Wise Realestate Advice on 1300 009 473 to discuss how their professional property development managers and buyer advocates can turn your property goals into property development success.


 

Property Buyers GuideDownload a FREE Home Buyers Guide, an easy to understand booklet designed to help you through the process of buying. Your copy of the buyer’s guide can be downloaded here