Three Considerations to Make when Venturing into Property Development
Posted on: 15 July 2020
People who have invested in real estate property will tell you that when done right, it is one of the most profitable business ventures you can get into. The only problem with real estate investment is that financing it is a little more complex than it is to fund another simple investment. Additionally, there are legal requirements such as surveying the land, zoning laws, and fees such as council fees and the money you pay other consultants to ensure the project is feasible. Without the right guidance, you might start a real estate investment venture and leave it halfway when you encounter hardships. Here are three crucial considerations to make before venturing into property development.
Choosing the Ideal Location
Location is everything when it comes to real estate investment. Before investing in a piece of land, have it valued by experts in a survey. Ask for a comprehensive report on the expected appreciation for the coming decades, check the location of roads, electricity lines, hospitals, schools and other social amenities. Check the local crime data and ensure that you invest in an area which will appreciate over time.
One of the hard costs that you will have to deal with when investing in real estate is subdivision of the land and getting the right permits from the city planning and development authorities. Basically, if you are building more than a certain number of buildings on the same site, it is considered a commercial construction endeavour, and you have to get the right permits for it. You also have to ensure that you have met all the zoning requirements of the area you want to develop, and that water, electricity, and sewerage permits are in order. A competent surveyor can help you apply for these permits and have them processed within the shortest time possible.
Creating the Project
When you have the land titles and the right permits to develop it, the next step is creating a project which ensures that you put the land into its best possible use. Get an expert architect to help you determine the highest and best use for the property, how many units will serve your best interests, the ideal size of the units and the possible restrictions to the project. Then, check whether the land has easements, covenants and overlays which might interfere with your intended use.
When you have experts in real estate development dealing with land subdivision and planning your project for you, you are assured of excellent results in the investment process. Reach out to professionals about land development.Share