7 Key Factors to Keep in Mind When Developing a Property
Property development is a risky but rewarding business. To get started on the right foot, discover the seven crucial factors when developing property.
Not all property is built equally. That’s why it’s important for property developers to learn how to have an eye for suitable properties. The housing market can be a bit unpredictable, and how it plays out affects people’s buying behaviour.
So, when developing property, it’s important to have a vision of what the site would look like once it’s fully developed. Not to mention anticipate how people will react to it.
With that in mind, we’re sharing the seven specific factors that most buyers look out for when purchasing a property in this article. Our goal is to help you start your property development journey the right way… and yield better profit once the project is complete.
Factor #1: Land
Land is a crucial factor for property development due to several reasons. The first of which is that the quality of the soil on a block can significantly impact the stability of any development. So, it is essential to conduct proper testing to determine the type of soil and its suitability for construction. The soil can also affect the cost of construction. In particular, if it is unstable, it may require additional foundation support, which can increase your costs.
You must also consider the condition of the land itself. If the land is vacant, it may be a more straightforward process for you. But if it has a pre-existing structure or trees, you may be required to demolish or remove them, which can be costly. These can ultimately impact the profitability of the project.
Factor #2: Size and Shape
The size of the site can directly impact profits because it determines the type of development you can do and the number of properties that can be built. Even just a few square meters can make a significant difference in the profitability of your project.
The shape of the site must also be considered since it can affect the total usable area and the frontage or width of the block. As a property developer, you must carefully evaluate these factors to ensure the site can yield your desired results and achieve maximum profitability.
Factor #3: Orientation and aspect
The direction your block faces can have a big impact on what kind of property you can develop and how desirable the end result will be. You’ll want to consider factors like light, views, privacy, and noise (including traffic) when choosing a site.
Generally, flat sites are usually easier and less expensive to build on than sloping blocks. But even if a block looks flat, it could still have a slope and require some extra work. So, be sure to get it checked out before you commit to buying.
Also, don’t forget to check if there are utilities like water, sewer, stormwater, and electricity available for your block to connect to. Knowing the location of sewer lines and other utilities is important because some can’t be built over, and it could affect your development plans.
Factor #4: Flood and Fire Risk
If the property is located in an area prone to natural disasters like floods or fires, it’s worth reconsidering the purchase. Building on the site will cost more. Plus, it may be difficult to sell the property due to the associated risks and higher insurance premiums. Additionally, growth opportunities may be limited.
Usually, you can check your local council’s maps to assess the potential risk of natural disasters for properties.
Factor #5: Council
It’s important to make sure the council is easy to work with and won’t cause any delays in the approval process. This way, you can avoid any unexpected costs that could blow out your budget.
So, when you’re looking for a site to develop, consider the council’s reputation and its ability to approve applications quickly and efficiently.
Factor #6: Personal Circumstances
When it comes to buying or renting a property, personal circumstances play a big role in the decision-making process. Factors such as family size, lifestyle, and future plans can greatly influence a person’s preferences and needs.
For instance, a young couple may be looking for a property that has a spare room they can use for a future child. While a single person may prioritise a location that is closer to their workplace or social circle.
That’s why it’s important for a property developer to understand that each potential customer has unique circumstances that should be considered when developing properties. By taking into account these subjective preferences, you can develop properties that better meet the needs and wants of your target market.
Factor #7: Available Resources
Another subjective consideration for property development is the resources available to you. How much time and capital are you willing to invest in this project? How involved will you be in property development?
If you have more time and money on your hands, you may be able to take on larger projects. In contrast, if your resources are limited, then you may need to start small.
One thing to note is that individually checking all these factors can be time-consuming. Fortunately, Archistar can help speed up the process. It’s because Archistar’s multiple data layer features allow you to see which of these factors apply to your chosen site at a single glance.
Use Archistar to Start Your Property Journey
Understanding and evaluating these factors can help you make informed decisions. This way, you can develop properties that meet the needs and wants of potential customers.
Consider using Archistar’s platform to simplify the process and make more informed decisions. The platform has features that allow you to quickly conduct development site feasibility. This way, you can examine hundreds of sites in minutes.
Try it out for free today through this link.