Going by the recent trends, more and more amateurs are joining the property development industry every day. The scope of profitability in the industry attracts everybody, but the wide range of activities and processes involved in developing a project is enough to scare away anybody. The property development process is indeed a complex task, but it can be understood much more easily if explained in easy terms. In addition, you may also consider hiring an experienced real estate development manager similar to Lincoln Frost to answer any questions you may have about the process, or even help you out when it comes to things like finding financing, so that your renovation venture is as successful as it possibly can be, especially when you plan on making changes like getting a roof , shower replacement, new Trex composite decking or even something simple like deck coating.
- The Preparation Stage
You may think that the first stage in the process of property development is to buy a land for the project. But, there are lots of things to do before purchasing the land. Let’s call this stage the preparation stage. You cannot develop a property on your own, so you first need to create a strong team of professionals to help you in the process. Professionals like town planners and legal advisors will help you calculate and assess the risks and gains associated with the project you want to develop. This is the stage where you’ll need to secure finances and choose the land suitable for your project. For more details, you can have a look at the Vision One Projects guide on how to choose a block of land for property development.
- The Purchasing Stage
As you already identified the land suitable for your project, it’s the time to get into the purchasing contract. If it’s your first chance or if you are not feeling confident, it will be good to take help from a real-estate agent. The true profit of a property development project is earned at this stage. The lower the price of purchase, the higher your profit margin will be. So, be sure you negotiate well to get the block of land at the most affordable price.
- The Approval Stage
Just having the land transferred in your name does not mean you can start building your project. You need to take development approval and planning permits before initiating your project. For this, you’ll need to enlist a town planner and fulfill the guidelines provided by the council. If you have the right team of professionals by your side, this won’t be a tough stage.
- The Documentation Stage
After getting the approval, you can start working on your project. This means you have to hire an architect and a team of engineers to create the layout design for your project. These professionals will draw the actual diagram of the project for which you, till now, only had a mental image. This is the first stage when you see your imagination taking the real form. Once you are satisfied with the design, you have to get it approved by the relevant authority of the place of your project development.
- The Construction Preparation Stage
Now, there’s nothing to stop you from getting into the real construction work of your dream project. Meet and compare different builders to choose the one you’ll hand over the responsibility of your project to. Once you find the most suitable fit, get a written contract in which all terms, conditions, clauses, etc. are written in clear words. This is the stage where you’ll have to hire or outsource your entire team for developing the project.
- The Construction Stage
Finally, you are on the construction stage. Now that everything is in its right place, you can get the construction of your dream project started. Once the construction gets started, make sure everything runs smoothly and on time. Be ready to deal with some unwanted situations like disputes between the staff or contractors. You’ll need to re-plan your project several times during this development stage but don’t get disheartened. Your main focus should be to get the work finished on time without compromising on the quality. You may also need to get some certifications at different phases in the construction stage.
- The Selling Stage
Now that you have completed your dream development project, it’s the time to earn your much-deserved money. You took so much pain to reach this final stage, so you deserve to be treated with a good profit. If you feel you are not the right candidate for marketing, hire an agent to get your development sold to prospective buyers. If you don’t want to sell off the development, you can also use it as your investment for creating passive income. Yes, you have the option of renting out instead of selling your property.
Hope this bite-sized guide helped you get an overview of the property development procedure. It can help you in making an informed decision if you want to get into the business.