There are various strategies you can use in property investing. One of them is property development. However, this is not for everyone as it has complex works to finish before you gain profit from it. Property development is more suitable for experienced investors who already knew about the risks and weigh in property business at least in general. Of course, property development has its risks and weighs just like other strategies in this business. It is not as simple as building a construction on a land you buy and sell it. It is more than that. The key of successful property development is the ability to execute the steps of the process smoothly.
Every steps of property development to understand
Property business is not for spontaneous decision making or unplanned purchase of an asset. This is a business where you need to focus on planning especially when it comes to property development. The key to the success is how you can plan everything prior the construction. Here are the steps in property development you should know very well ho to execute them:
- First thing first, you need to know the reasons why you choose property development out of many options in this business you can get involved with. You need to know your goal is whether to sell the property for quick profit or to aim rental return once the development is finished. This will help you to take the right step, the one that is more purposeful.
- Looking for potential land for you to develop. In this step, you need to know exactly how you are going to fund your purchase and how you want the ownership goes. Asking help from professionals is a smart idea.
- Start planning what you are going to do with the potential site you have found. You need to know what kind of concept you want to apply. Before going wild, you may need to assess the local council’s policy so that you won’t any rule later during the development process. After everything is click, you then proceed to the next step which is to purchase the land.
- The next step is to deal with the planning regulations. This may take long a time than you initially thought because you need to handle everything according to the local council’s development guidelines.
- Once you got the approval, you need to start working with the drawing and documentation, along with your engineer and architect. You also need to organize the finance and discuss it with your accountant during this pre-construction.
- The next process is the construction where you and your team starts working on the project on the site. It can take several months to complete depending on the scale of the project. Finished with the construction, you need to do the completion where you will sell or rent it out. It is highly recommended to have backup plan or exit strategy since the beginning so that the end of development process will be done smoothly.