The primary reason why people subdivide their land is to develop it. The truth is, developing a subdivision is not as easy as one would think. Developers have to be cautious to ensure that the venture is profitable. Below are essential tips to help you develop your subdivision.
Conduct A Market Survey
The primary benefit of a market survey is that it ensures that you make informed decisions. For instance, you will know what developments are in demand in the area. Besides, you will have an idea of how you can make your development appealing to buyers. For example, other than quality fixtures, the properties should have recreational areas such as swimming pools, tennis courts and parks. Besides, residents should have sufficient parking space.
Understand Local Laws
Conduct some due diligence to understand the land planning and development laws in the area. For instance, you should check what amenities the property should have. More often than not, local councils will compel you to install access roads, power and stormwater drainage systems. Check the zoning regulations to determine what kind of developments are permitted in the area. For instance, some areas are zoned for residential buildings, while others are zoned for commercial developments. Assess the building code to identify whether there are requirements on foundation construction, the types of roof to install or the maximum number of storeys.
Work With An Experienced Contractor
Consider the following when hiring a contractor to develop your subdivision:
- Work with contractors experienced in subdivision works. It is a guarantee that the contractor understands the subdivision process. For example, the contractor could inform you of the required permits.
- Contact some of the contractor's clients to ascertain their reputation. As a rule, you should avoid contractors with a bad reputation.
- Negotiate the terms of engagement. For example, the hiring contract should compel the contractor to meet the project deadlines. Besides, it should have a reasonable dispute resolution mechanism.
- The contractor must have sufficient insurance coverage.
Assess Your Financing Options
Unit developments can be expensive. As such, you should assess your financing options to ensure the project does not stall. Bank finance is an instant option for most developers. However, its downside is that you will have to start your repayment before completing the project. Consult with your contractor and inquire whether there are developers that would want to invest in the project. It is a sure way to raise interest-free capital. Alternatively, you could sell some of the land or sell some properties off-plan.
When conducting a subdivision unit development, conduct a market survey, understand the planning laws, work with experienced contractors and assess your financing options.
For more information, contact a land subdivision development service.Share