With the help of PropertyStart‘s step-by-step practical guide to residential property development, you will be on your way to creating your ideal home in no time. Check out the different stages below:
Stage 1 – Initial Stage
When considering property development it is important to concentrate on only a few suburbs. This way you become familiar with the area, the demographics of the area, council requirements and a saleable product for the area in question.
Stage 2 – Concept Stage
At this stage you should have a list of potential sites that are suitable. It is important to conduct due diligence to maximize profitability.
Stage 3 – Finance
The feasibility and research you have now completed should indicate the amount of money you need to borrow to bring your project into being. If it is your intention to sell the final product then you will only require short term finance to cover the cost of the development.
Stage 4 – Purchase
At this stage you should be very comfortable with the overall scenario. The purchase price you have negotiated is reflected in your feasibility and the potential profit you have targeted is achievable.
Stage 5 – Planning Permit
At this stage you need a creative architect to work with the planning consultant in order to produce a design that will comply with local requirements and your feasibility study outcome. The design has to be marketable, since our ultimate goal is a quick sale.
Stage 6 – Working Drawings
Working drawings will be part of the instruction to your builder on what to build and the documentation submitted for a building permit.
Stage 7 – Pre-Construction
It is important to get accurate pricing for your product with view to offering it for sale ‘off-the-plan’. Selling ‘off-the-plan’ will help with financing and also provide stamp duty savings for prospective purchasers.
Stage 8 – Sub-Divide
Traditionally sub-division is undertaken after the construction stage however, some financial institutions will insist that sub-division is done prior.
Stage 9 – Construction
Your builder will prepare detailed quantity estimates, appoint trades and suppliers and coordinate the process, through a site supervisor. You will see the project taking shape as the dwellings begin to appear on site and finally with practical completion of the build.
Stage 10 – Completion
On completion of the project you must conduct a detailed final inspection of the newly constructed dwellings.
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