The real estate business continues to attract lots of people with the promise of hefty profits. However, real estate investment is usually a complex matter, full of potential pitfalls all along the way. From turn-key projects to new property development, real estate business requires strategies and planning for it to succeed.
If you want to be a property developer, it’s important to understand the ins and outs of this industry. Here’s a comprehensive guide highlighting the fundamentals of property development:
The Basics of Property Development
Property development, in general terms, involves investing in land or buildings, then converting them to higher use-value. As a developer, you buy land and property, renovate and improve the property, and finally sell it to prospective customers at a profit.
Getting Started as a Property Developer
As an investor, you will commit your equity, time, and other resources to transform properties for better use. Thus, you should study town planning, construction processes, construction laws, finance, and proper marketing of real estate. If you need help, you can seek the advice of a real estate development guide.
Project Ideas
Once you have an idea of how real estate operates, the next step is coming up with a project. Depending on the nature of your project, you need to consult a few professionals. Some of the professionals you will need to contact include quantity surveyors, lawyers, landscape contractors, construction managers, architects, town planners, among others.
The Process
Upon forecasting costs, projecting a return on investment (ROI), and undertaking feasibility studies, the next stage is launching your project. Here are some of the phases that most real estate development projects undergo:
Pre-purchase Stage
At this phase, the investor usually zeroes in on the ideal sites based on feasibility studies. You need to investigate the preferred property thoroughly. Experts will help you with the necessary investigation. A planning consultant will asses the development potential of the site, a solicitor will examine any contract of sale available, and an architect to draft possible design concepts.
Purchasing
Once the earmarked site is clear of any issues, you should proceed and purchase it. It’s advisable to enlist a property-buying agent. Such agents have better negotiation skills and will enable you to get a good deal.
Development Approval
Before developing your acquired land, you will need the required licenses. Your architect needs to draft your development plans and submit them to the relevant oversight bodies. If the plans are in line with development regulations, you will be issued with approval. All that remains is the construction of the property.
Completion
The construction stage takes a longer duration, especially for complex projects. This is where your finances are put into real use. Qualified engineers and workers will go along way in making your project a success.
In the end, your real estate development project might be a success. But you should remember that without proper marketing, you stand to lose a lot. A better option is to hire the services of an agent who can aggressively sell your real estate. If marketed correctly, your project could be a potential cash cow.
