There are so many reasons to get into the property development industry.
In property development, you get to visually see improvements when you build something and watch bare land, or a property change and improve. Looking back on your handy work is rewarding, but moreover, property development is profitable. Why not turn something you enjoy into a full-time job and reap financial rewards too? As with anything, turning something you love into a profitable business requires a fair amount of know-how and lots of research and planning along the way.
Gauge the Market
Knowing the market is key to making a profit. Even if you manage to match your idea to the land, the zoning, and budget, you still need to know what is happening in the economy and the local property market. The economy is a big one; is the economy stable, or is it facing a bit of a slump now? More specifically, how is property faring in the current economy? If property prices are low, you may be able to buy low and sell high, but there are few guarantees in life.
More still, what do the locals want and need? Do they want another corner store, strip mall, or a duplex? If what the locals want is not your forte, it’s probably best to keep looking for a good spot. Find out if the locals can afford more premium homes or if they need smaller and more economical homes. Then you can investigate zoning and find the best piece of land or a good spot to revamp accordingly.
Research the Site
Zoning is your next step after market research. One needs to know a lot about zoning to get things right; you wouldn’t want to go ahead with concepts, drawings, and plans without knowing exactly what you are and aren’t allowed to do. If you are looking at building a commercial property, find out exactly what kind of commercial property you are allowed to build, and the same goes for residential property. Don’t start plans for an apartment complex when there are height restrictions; you’re just wasting time and money. Along with zoning, you want to ensure that your ideal spot is not in a high-risk fire or flood zone; such factors will ultimately affect the profitability of your project.
If you have a good plan which looks like it could work and the zoning doesn’t quite correspond, it’s worth a trip to the local council. They may be persuaded to change the zoning of the area if it is long overdue; they may also be prepared to make an exception; if you don’t ask, you’ll never know. If the local economy and population have changed, it may well be in their best interest to revisit their zoning, and if you’re quick on the draw, this will really work in your favour.
Research is the essential step you must take before you really get your hands dirty. Never break ground before you know what you’re in for. There are many aspects of property
