Property Development Process
The property development process consists of a series of steps by which developers seek, stack and execute a real estate development project. A lucrative property development process includes measures that will take you from the initial task of finding development sites to the completion of your project.
When it comes to developing a property and becoming an ideal property developer, you have to buy, improve and sell much more than you see at first glance. As a primary developer or even an armchair developer who recruits a project manager and a team of consultants, You need to take on different roles and responsibilities to get the job done.
Understanding these roles begins with understanding all phases of the development process, from conception to completion. By learning a little about each stage and seeing where it fits in, you can clarify the process and make a more informed decision about your involvement. As your knowledge grows, so does your trust that you could do so. So take your time and read through the following five major stages of a typical property development process.
Stages of a lucrative property development process:
- Innovative Research
- Completion and Promotion
1. Innovative Research
Before you spend a penny and make appropriate documentaries, you ought to have a clear idea of what you want to achieve. And also, the kind of development you want to be set in play.
When you do research and have a vision, you develop a concept for what you will build in your development process. You employ the ideal property development team, you get the right reports, and then you award the construction to a builder.
This process involves the provision of all the information you should need to find out where you can make money. Evaluation of some potential suburbs, neighbourhoods and also locations, conducting a preliminary market survey, budgeting, conducting a preliminary financial analysis, preparation of timing analysis, and review of the Council's political climate and process. It is of importance that you must study the Council's zoning cards, identify potential locations, and discuss your possible development process with a council planner.
After completing your research and once you've found a potential site, the next logical step you will need to do a feasibility study to work out a concept.
This means that you should set up a basic business plan for your development process which must show that it has the potential to generate a lucrative return. The feasibility concept involves conducting a market study and preparing a preliminary program for the project. At this point, you should carefully assess the market demand in the area of your choice.
You want to design and realize a project that has the optimal marketability. You evaluate the criteria, set a target budget, compile your original financial plans, set milestones, and confirm the zoning and required approvals.
When it gets to a state that you can affirm that the project will be profitable, then, construction should be set in play. You must complete the proper acquisition of the site, obtain approvals from all necessary regulatory body and begin operations with builders and the other professionals you need to construct the project. Your finances must also be taken into consideration and given a correct evaluation, employ an architect to draw out plans and data for you, and evaluate potential builders and project managers. You will then make a submission of the development proposal, revise and update your feasibility study, and possibly begin pre-sale.
This is the stage in which your project will finally become visible and tangible. You may not be directly involved in any of the actual construction works. But you will be much satisfied when your efforts have been put to work. And the project is accomplished. You will need to appoint a project manager who will oversee the different stages of the construction project. While you also select a main builder and make clarifications for the construction works.
5. Completion and Promotion
Always have it in mind that your profit will not be in your pocket until the construction is complete. And you will need the appropriate property and certificates to sell your finished product. Create a marketing plan for your developed project and sell the property to make profit. You need research for a target market, take up creative materials that will fit the marketing channel, choose a channel, and run a sales campaign.
Having a necessary foundation for the property development process. As a property developer, you can spend your profits as equity, hold, refinance or get a line of credit. That way you can use the capital again for another project. And then repeat the process.
Keep building on it, and you'll be well on the way to realizing your dreams of wealth creation.