Many things can come to mind, on the subject of “Property Development”, as it involves the completion of various tasks and processes.
From the initial steps of buying land, to the construction and development of your building ……you may fall into the trap of assuming that the road ahead may be difficult, as there are many factors that need to be considered.
Don’t give up!
With well-educated decisions, and a helpful team of advisors, you will soon find that the road ahead isn’t so difficult, and may very well be a rewarding endeavour.
Understanding the basics….
Although the process may naturally be different from project to project, there are certain steps and stages that all property developments go through, before a grand plan comes into realisation.
Pre- Purchasing
The pre-purchasing phase It is wise to have your finances already in place in this initial stage in order to give you a good start, so you can make clear decisions in determining what you are looking for when seeking out land, getting council approval for multi-dwelling developments or even if you are looking to refurbish an existing premises. Having your finances in place will also help you determine your borrowing capacity.
It is important to have the assistance of dedicated consultants and industry professionals, (town planners, surveyors, legal aid, financial consultants, etc) that can provide you with an overview on your project, and the tasks ahead.
Negotiating & Purchasing
Be sure to use enlist a buyers agent!
The help of a buyer’s agent isn’t limited solely to the drawing up contracts, but their expertise and experience, can also provide you with vital information needed during the negotiation process. In addition, the aid of their services will greatly increase the chances that you will be able to get the best negotiated prices, on the purchase of your property (or land).
Approval of Development & Town Planning
It is imperative that the development guidelines of your local council, is taken into consideration when drawing up plans, and plans drawn up by your architect will also need to adhere to such. Due to the intricacy of the development process, it is crucial that a town planner, surveyor and other important industry professionals are involved in this phase.
Development approvals can take up to 12 months, and having embarked on the journey there is no doubt that you would want the best outcome. Be sure to speak with industry professionals, have a checklist, and put your best foot forward.
Pre- Construction
Besides securing bank approval and funding (development loan), there is no doubt that acquiring quotes will be the one of the main tasks on your mind, as you will be choosing from various construction entities, making sure that the plans made adhere to your criteria, and fit your budget.
Great planning is needed for the preparatory work (leading to construction) that will be carried out in this phase.
Construction
During this period it is wise to make sure your site is prepared, and that you have obtained all necessary licenses and permits to commence with construction.
Although the completion timeline may vary from project to project, the construction stage is one of the most exciting stages, as you will be to see all of your gradually paying off.
Project Completion
Well done…..you’ve made it!
Upon completion you may decide to sell or not to sell.
Or if you plan to progress on to other projects, you can also use the property’s equity and income, (by retaining the property) to fund your next property development project. By doing this you will be able to grow your portfolio, borrow against its equity (end value), and acquire wealth over time.
Focus on your vision, and the important steps you will need to achieve your end game results. Whether you are yet to buy, or have already bought land, be sure to get in touch with professionals!
Our team at Abacus Finance are more than happy to sit down and speak with you in in person, or even over the phone, to help ensure that you are well informed when making these important decisions.
Feel free to contact us today!
