What Are the Stages of the Land Development Process?
Land development is the process whereby a land developer finds the right piece of raw land and builds a property rather than finding an existing property and renovating it. It’s a complex process, but once you know what’s involved, you have an incredible opportunity to build something to benefit the local community and reap the financial rewards. Land development is a multifaceted job that requires a range of steps, so it’s essential to know what you’re getting yourself into before making any big decisions. To that end, let’s discuss the stages of the land development process.
Choosing the Right Parcel of Raw Land
Finding the right location goes hand in hand with conducting your due diligence and feasibility study. Australia has amongst the strictest property legislation globally, which leaves little room for mistakes. Do your homework and ensure any piece of raw land you choose to develop meets your criteria, and you are allowed to build the type of property you want to develop.
When looking for land, consider the following:
- Zoning of the land and site restrictions.
- Is it a heritage or historical site?
- Is there a fire or flooding risk?
- Existence of infrastructure and utilities.
- Local economy and the needs of the local population or market.
- Public transport routes.
Will Your Project Be Profitable?
Assuming the land is zoned correctly, you need to account for any additional costs which may be incurred or hinder the project. A lack of infrastructure and utilities could drive up the development cost considerably. Not to mention clearing and preparing the land for development. If the local economy is not strong, you may struggle to rent out or sell your development. When compiling your feasibility study, these factors will impact your ability to secure financial backing. Only once you have completed these steps can you begin the process of acquiring the land and securing financing.
Design Beyond Reproach
Designing your development is the fun part, but many technical aspects will come into play. Generative design will allow you to automatically create hundreds of different building options that still adhere to site rules and restrictions. This allows you to assess many different concepts and identify potential problems, all while also being able to run static feasibility analysis on select designs. And only then will you need to get your architect involved and prepare for council submission for development approval.
Build a Team and Prepare to Break Ground
With the right piece of land, finance, and a council-approved design; you will need to bring additional people on board to ensure your project runs smoothly. You will have already collaborated with an architect, property finance advisor, and the council, but now you need a few other people. Your ideal team will consist of people familiar with the property development industry and the type of property you wish to develop. You will need a conveyancer, a building contractor, a project manager, a marketing team, and a real estate agent.
The next stages of land development would include:
- Break ground
- Manage the project
- Market the property
- Sell or rent the property