Property development is one of the most lucrative career choices for most people. The beauty of the process is that when you master the land development industry well, especially its dos and don'ts, you can make dramatic amounts of profit within a short time frame. On the other hand, if you dive head-first into the business without understanding how it works, you will not easily break-even, and you might even lose more than you invested.
The fact that the property market changes every day also makes property development a very challenging career. The consumer trends you follow when starting a land development project might have changed by the time you finish, which means that if you are not keen enough to see into the future, the market will not favour you. Here are the three most common mistakes people make when investing in land development and how you can avoid them.
Sidelining the Community
The land might be yours, but it exists in a community that can either simplify your construction project or complicate it. If the community feels that your project is misplaced or that it could disrupt their lives, they are likely to fight back. And although the local authorities are supposed to be impartial when making their decisions on permits, they are elected by the community and will serve their needs first and foremost.
Therefore, before starting the land development project, ensure you consult with the community and hear what they have to say about your development idea. If they like it, go ahead. If they do not, figure out how you will get them on board.
Ignoring Feasibility Checks
Commercial land development is very different from residential construction. In commercial land development, money is at the centre of everything. However, the residential development aspect is all about beauty, comfort and convenience. If for instance, you are setting up a mall, you have to research and figure out if the traffic flow patterns can allow the right amount of foot traffic. If you misplace the property, you will never get the returns for your investment. Also, test the soil to make sure it can handle the weight of your structure.
Not Hiring the Right Experts
Any construction project is sensitive. Seek help from professionals such as structural engineers, architects, geologists and many more to carry out your property development project smoothly. Do not cut corners with these services because it might cost more than you intended to save.
No matter the land development direction you intend to take, ensure you get a reliable contractor to help you plan it. Land development projects can be delicate sometimes, especially when someone decides to handle them themselves. However, seeking help from the experts will ensure that the project runs smoothly and profitably.Share