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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.

 

See PropertyStart on stand A09 for your $500 discount only available at the Build & Renovating Expo, 4 – 6 July, 2014 at the Melbourne Exhibition Centre. 

For more information, visit www.buildexpo.com.au