Land Development Tips
Real estate investors will often prefer property development over other kinds of investments in the sector. Although the property development process often seems tedious, it guarantees high returns on the initial investment. If you wish to develop a property, the article below details some principles you should observe.
Consider Subdivision
Subdivision enables you to sell your property to several buyers. As such, you can increase the returns on your investment. Consider the following when subdividing your land:
- Always work with an experienced surveyor based in your locality. Surveyors have the licenses required to propose a subdivision plan with the local council.
- Ask your surveyor about the minimum plot size to determine how to subdivide the land.
- Do not be tempted to subdivide the property into tiny parcels. Remember, your buyers will want to build spacious homes with landscapes and external living spaces.
- The parcels must be functional to the new occupants. Therefore, consider installing amenities such as access roads, water, electricity and gas. If the subdivision is expansive, leave an allocation for public amenities such as schools and a shopping centre.
Establish Zoning Regulations
Zoning regulations play a significant role in determining how you will develop your property. Typically, they stipulate what developments you can put up on the property. For instance, some locations are zoned for residential use while others are for commercial use. The zoning regulations should not be a bother if you have conducted market research to identify existing gaps. For example, most people may not think that industrial properties are profitable. However, you could partner with 3PL companies to provide cold storage facilities in the area.
Ask For A Site Inspection
Do not rush into drawing blueprints for your development without conducting a site inspection. In most cases, site inspections are conducted by geotechnical engineers. They will assess the soil structure, the drainage system, susceptibility to disasters and the presence of land contamination to determine the viability of your proposed development. For example, if the area has clay soils, you will need a foundation with piles or piers. On the other hand, you will have to raise the foundation if the site is in a flood-prone area.
Work With A Skilled Contractor
You must be cautious when hiring a contractor to work on your site. Property development includes excavation, construction, installing amenities and interior fittings, electrical and plumbing works and creating landscapes. Therefore, ensure that your contractor has the resources and technical expertise required to work on the project from the ground up.
When you are considering land development, you need to subdivide the land, check zoning regulations, ask for a site inspection and work with a skilled contractor.
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