Property development and property investment generally go hand in hand, and they also have a single aim to make more money and return on investment. A property investor generally builds up a lot of properties portfolio and grows their investment by just renting the properties out and, in some examples selling some selected properties later at a good profit.
Property dealers are generally more interested in making a lot of money by taking their property and developing it to its maximum potential. Usually, they divide the lots and buildings into smaller homes or buildings into townhouse complexes. You would be wondering how much money the property dealer but you don’t have to look any further as you can get more information here.
Take Land Benefits
The property developer utilizes the acquired land by building more apartments in a story-based model. In this way, they are able to build more homes or apartments on the same land where you can build around four homes.
Property Developers Know where to buy
Timing and location are crucial in making money after developing the property. The location influences several matrices. Property developers don’t end up looking only to buy in popular neighbourhoods and businesses.
Still, they also buy in neighbourhoods where the apartments for sale are showing more than the average growth. It is either driven by speculative driving by other developers or first-hand knowledge of some developments that will make the neighbourhood very appealing in the future. There can be anything coming up, like a university, where students will be attracted to buy the new property.
Property Developers Know About The Regulations
different parts of the neighbourhood have different regulations, and there are different zones and lots out there that they must consider. At the same time, a proposed mixed-use development must account for how a specific section would be zoned and whether the intended use would be permitted.
Developers also have to carefully consider overlays for bushfires, flooding, and heritage areas, along with other restrictions that the local government would have imposed for the lot in the neighbourhood. They can include maximum height for different residential buildings and a maximum floor space ratio besides minimum setback requirements.
They Can Resell The Optimum Potential Of The Property
Property development is not about flipping the house. It is just about being able to envisage and then realise a new development that frequently replaces the current house with different units. But developers also understand that realising the full value of the property or lot is only sometimes about squeezing the lot possible into the available space. It is about looking at what existing zoning permits, besides what they are researching into the area or neighbourhood, reveal what is needed.
You have to consider the high property development risk, and it is always good to start with small-scale property investment before shifting into development. This will give you better exposure to your property market in the area in which you are operating. It will also help you build a network of contacts important to property development.
