The right process counts when it comes to property development
The world of property development is both exciting and overwhelming depending on how you plan. Preparation is everything so this month we’re providing a snapshot of what’s involved when developing property. While you don’t need to be an expert before you start it’s helpful to understand the various stages before you speak with a builder.
Finance and feasibility
There’s great potential for turning a profit with a property development but unless you can fund the project, as well as any unexpected costs, your investment dream will become a nightmare.
Carefully factor in all costs related to each stage of the development from architect’s fees and council applications to the construction itself and then allow for a safeguard should you face any construction cost blow outs. With increasing interest rates it’s important to have enough capital to prepare for higher loan repayments as well. The wise developer is aware of the risks and prepares for them. This is especially important as we continue to move through the COVID19 pandemic and face unexpected delays to projects.
Creating a business plan is essential to determine whether your property development is going to be profitable. Educate yourself on marketing real estate. You may want to consult a buyer’s agent and negotiate prices for each unit. Remember, your objective as a property developer is to turn a profit.
Research
Location is everything when it comes to any build but there’s a lot of additional factors to consider before purchasing land for a multi-unit property development. Even if your plan is to increase the equity of the block that your current house sits on by subdividing for dual occupancy, you need to be sure you will have a buyer or tenants for it. Do a bit of research: what are the selling points of the area? Are there good transport links to services, schools and recreational facilities?
What’s the local property market demand for duplex or triplex developments? Is your block of land in a suburb zoned for multi-unit property developments? Understand the specific requirements and limitations in relation to property development in your residential zone.
Design and Documentation
Having settled on your site, choose an architect or draftsperson to design your multi-unit property development. An engineer will also be required. Once the drawings are done they need to be submitted to council for Development Approval.
Are you ready for construction?
You need to find a builder you can trust and then agree on a contract. Be sure that your builder can demonstrate to you how they are managing the current challenges in the construction industry. Does this builder have the experience to manage the extended build times and construction costs?
Now is also the time to question whether you want to act as project manager or enlist a professional. You need to ensure the site is prepared, oversee progress and obtain certification at every stage of the build. Don’t underestimate the responsibility and stress that comes with this job!
How do the experts approach property development?
Maitland-based builder, Valley Homes has their own efficient process to offer to potential property developers.
Design
Architectural design and drafting service
Estimate
Accurate cost estimating to deliver a fixed price tender
Plan
Obtain all relevant approvals from council and relevant authorities
Select
In-house custom inclusions & colour consultant
Manage
‘Concept to Occupation’ project management
Build
Turn key delivery of residential construction project
Design
Starting with their design team, Valley Homes offers architectural designs and drafting services to work with your vision as well as your particular block of land. They know how to position your multi-unit development so as to get the most out of your land.
Estimate
Accurate cost estimating to deliver a fixed price tender is the next step Valley Homes takes. We appreciate the current challenges facing the construction industry and we factor in all costs so that there are no unpleasant surprises. Having long-standing relationships with our local suppliers is an added security for our customers and minimizes transportation of supplies thereby reducing costs. Every cent counts in property development!
Plan
Council bureaucracy is what many new property developers dread most. Fortunately, Valley Homes can obtain all necessary approvals from council and relevant authorities. As a Newcastle and Maitland builder, Valley Homes has a thorough understanding of the local councils’ planning regulations and requirements. That knowledge is put to good use to make the process of property development so much easier for our customers.
Select
Having settled on the design of your multi-unit property development, secured costings and ticked all the boxes for council, the Valley Homes in-house team helps select inclusions including top quality products, materials, finishes and colour schemes. We work closely with local suppliers to provide competitive prices for our customers.
Manage and build
Valley Homes offers project management to ensure every stage is completed without a hitch from concept through to construction and onto completion. We deliver with confidence so that your investment property can bring in those anticipated returns.
Don’t leave the process to chance, choose a builder with solid experience
For all of these reasons, experienced and novice property developers alike choose to work with Valley Homes. Why struggle to manage a project alone when you can take advantage of the expertise of the company that’s been building in Maitland and Hunter Valley for over 50 years? It’s what we love to do. Call us today.
