Developing raw land can be a nerve-wracking experience. However, a well-planned land development project is one of the most profitable real estate ventures. So, how can you develop land? Read the guide below.
First, you should hire a land development consultant to conduct a market survey. The survey should examine the current demand for land in your locality and the existing market gaps. For instance, if the area has single dwelling units, the consultant should evaluate the characteristics of the population to determine the viability of rental apartments. He or she should also check zoning regulations to determine whether there are restrictions on the kind of structures you can construct. For example, the town council could prohibit high rise buildings in the area.
The consultant should also give a comprehensive report on the permits and licences you will require before commencing construction works.
Most local councils will have minimum requirements for people that would want to develop raw land. You may be required to build access roads or install water, electricity and telephone cables. Besides, the property should have a stormwater drainage system to prevent floods during the rainy season.
Furthermore, you should have an architect design the blueprints for your development. He or she should conduct a site survey to check the type of soil, land orientation and vulnerability to natural hazards. The local council will evaluate the blueprints to ensure they do not flout any regulations. Once the blueprints are approved, the architect should prepare a bill of quantities detailing how much it will cost to put up the structure. With inadequate funds, you could take a construction loan from your bank or partner with a real estate development company.
You'll also want to invite a few reputable contractors to place bids for your project. When choosing a contractor, you will need to examine the following:
- Their expertise: Ask for his or her portfolio to evaluate some of his or her previous projects.
- Their professionalism: For example, what materials will he or she use at the site? How long will the contractor take to complete the project? Does the professional give guarantees?
- Their communication skills: The contractor should have excellent people skills since he or she will regularly interact with the workers, the site engineer, or architect.
- Their adherence to safety: The professional should observe safety at the site. Besides, he or she should have adequate insurance coverage.
Once construction works commence, hire a real estate agent to market the property. Some of the homes could be sold off-plan to buyers that want to take advantage of rising property prices. It is a sure way to raise capital to complete the project.
To learn more about land development, contact a construction company today.