With the property development industry booming, many want to get in on the action; Australia is growing, and there’s money to be made. More than writing a business plan, you need to understand the intricacies of the property development process. It’s a process that requires a clear-minded, logical, and creative approach. And when you know what’s involved, it’s easier to prepare yourself mentally for the work ahead. To help you prepare for your property development project, we’ve outlined the property development process.
Before You Buy
In the prepurchase phase, you conduct due diligence. More than finding a site, this stage involves securing finance from the appropriate lenders, putting together a team, assessing your risks, and compiling a feasibility report. This is the best time to change your mind about anything, the type of people you work with, where you want to develop, and what you want to develop. From this point, you will make all your decisions with an understanding of the risks involved.
Negotiate and Purchase
Now that you’re armed with the essential information, you can select the ideal property or piece of land for your property development. You will network with real estate agents, negotiate property prices, draw up contracts, and finally buy the property. Your team will assist in this process, so ensure that everyone is on the same page from the get-go.
Planning and Development Approval
Getting development approval can be tricky, but with the help of the town planner and property development software, you can better understand the council’s property development guidelines. Familiarity with these guidelines makes it easier to secure your planning permit and get development approval. If you skip this step, you are likely to make some costly mistakes; you must deal with the red tape before getting creative.
Now you can start to finalise your design options and have them professionally visualised by an architect. Together with engineers, you and your architect will ensure that your design is approval ready. You may face various iterations here and there, but this step in the property development process is what will ensure your building is beautiful, safe, functional, and profitable.
Before you break ground, you need to have a clear idea of who will be heading up the construction. Take your time to meet and compare builders. With the help of your project manager, you can find a builder who will meet your timeline and budgetary requirements. From here, you will draw up a contract to ensure that your agreement is legally binding.
With all your project preparation done, you will prepare the site and manage the construction. Remember that there will always be unexpected delays, so prepare for them. During the construction phase, you will keep a close eye on the progress and obtain certification at each key stage of the build.
Time to Say Goodbye
Whether you choose to sell or rent your property, you will be saying goodbye to the building phase of your property development. Your final step is engaging with marketers and real estate agents to either sell your property or retain it as an investment.
Now, with a clear idea of the property development process, you can get organised and ready for your next project.