Over the last few years, the trend of investing in land has taken a great leap forward. As a result, property values have soared through the roof high and are still ascending. And the popularity of property development is also increasing because of the anticipated return on investment.
In fact, returns on property development are considered more promising as compared to those of the stock market. Hence, when property prices are experiencing a steady growth, property buying and development are believed to be assured investments. This whole concept has even been a great kick-start and boost to the business of property development.
When it comes to property development, developers need to follow certain norms and sequences of steps for managing entire projects. Important things to keep in mind for successful results are:
1) For any project involving property development, finances most often play a major role because the financial status largely decides the nature and vision of the project.
2) Organizing a team of consultants is of utmost importance. This team can guide you on the projects viability and can include a development manager to co-ordinate the entire property development process, a solicitor, an architect, a surveyor along with town planner and an estate agent to give you honest advice on end values and marketability.
3) The main consideration in any project of property development is the land. If you have a lot of land already on hand, fine and good. But if you are planning to buy a piece of land then, always purchase land that has potential for development. IN other words look ahead, plan ahead. Think bigger.
4) Once, you have made a decision about the purchasing of a "potential site", giving a thought to its development conception is necessary. For deciding upon the project concept, for example, consider important factors such as whether to built the land for residential or commercial use, the size of the project, assessing the local council's policy towards your development strategy and other key community issues that may surround your plans - are all very important. These will also help the architect in drawing up the project plans according to the planning regulations and according to the local council's development process.
5) In order to have a successful property development project, a survey must be completed for that particular and nearby areas, to give you a clear idea of what the market bears and wants in that area. Survey data can help you understand what would sell or lease well in that area, for instance. Keep in minds always that it is important to build a project that is marketable.
6) Doing the math with the help of an accountant / bookkeeper for your property development can also help you understand what the land is worth to you and your business interests. These calculations should include the total construction cost added with the fees of the consultants and also includes the likely end sales values and the profit margin you want.
7) Before starting with the actual construction of the property development, ensure that the detailed plans from your architect along with the working drawings of any contractors & subcontractors are developed and meet with your approved, plus of course, obtain any building and other permits needed.
Pay the builder and other contractors / subcontractors progressively after the completion of each stage. This gives a proper flow to the entire construction process and on completing the construction; the project will be inspected by the local authority granting you the completion certificate making your property development project ready for sale or lease.
When it comes to property development, make sure to keep good records and copies of all receipts, estimates, bids, and other important documents. Keep everything together, too, all in one place like a special project folder, drawer or sealed box for handy reference.
