When you are planning to invest in property development, things might seem a bit too easy in the beginning – you need to buy some land, hire a few builder, and sell the developed property. But once you start spending some time on planning the property development, you will start to see the intricacies involved in the entire project. Below, we list six incredibly useful property development tips that can make your investment project successful.
- Hire The Right Builder
The first thing to focus on is to hire the right builder for the job. It is better to only hire a builder who has at least 10 years of experience in the field. They must also have a history of consistent works without any extended periods that indicate a lack of any projects. Conduct in-person interviews to see whether the communication with the builder is smooth and both of you are able to discuss the project ideas clearly. Plus, you must also check the area in which the builder is specialized – do they focus on residential, speculative, commercial, or duplex properties?
- Unique Offering
Property development must be done with marketability in mind. The project must have unique offerings that you can use to make it stand out from rest of the properties in the region. Only then can you attract the best customers into buying it. Get in touch with the local real estate agents and know the pulse of the market. Understand the type of properties that customers are looking for in the region and check out whether they are in good supply or not. If there is a significant dearth in such in-demand properties, then you might have just hit a jackpot.
- Subdividing Land
The correct subdivision of the land is critical in maximizing the profit of the project. No space must be wasted. You must ensure that every cent of land is monetized to the max. And for this, you will need to hire top-notch land subdivision experts like Vision One Projects. They have years of experience subdividing land for multiple projects. As such, they are well equipped to take a good look at your property development project and subdivide the land in the best way possible.
- Get The Location Right
The profitability of any property development is dependent on one big factor – location. If you get the land at a location that sees the maximum traffic and is the focus of a large population, then you have invested in the right plot. Any property you develop in such high traffic areas can be sold off like hot cakes. However, this does not mean that you should completely neglect the plots located at places that has sparse population. These plots must be investigated based on their future demand. As such, if you think that a specific plot may only yield significant profits 10 years down the line when population explodes in the region, then that too is a good investment proposition, provided you have the ability to keep the land for that long. Just find a way to monetize the land for these ten years to ensure that you get some monetary benefit from the land until the time is ripe for property development.
- Tax Considerations
You also need to carefully consider the tax involved in the project. And this will depend on the level of involvement in the project. If you have put money into the project purely as an investor, then you will have to pay taxes on all profits that result from the development. However, if you are willing to hold on to that property for over 12 months, then you may be eligible to get about 50% discount on the taxes. And in case you are involved as a developer in the project, you will be liable to several other taxes. Plus, the scope of any discounts is also rather slim. So, be sure to talk to a good tax consultant and discuss how to minimize your tax obligations.
- Hiring Specialists
To ensure that the property being developed meets the highest standards, you need to get the best specialists. This includes the services of surveyors, engineers, designers, solicitors, building inspectors, geo-technicians, and so on. The more experience and reputed they are, the more you can be assured that your property will meet world-class standards. And only by offering such top-notch properties can you expect to get premium price for your project. So, be sure to hire the best of the best in the industry for your property development.