Depending on the type of develop you wish to do, you may want to use the equity you have currently, or borrow from a lender. If the latter, you must consider that the interest will be higher than a typical home loan. When it comes to property development, lenders will usually lend you 70% of the land value and 70% of the construction costs – the rest you’ll have to find on your own.
If you are considering a large development, you may want to work with private financiers or financial advisors that may pile syndicate investments together to achieve a healthy return.
2) Picking A Location
It’s of utmost importance to arm yourself with education on market trends, areas of current and future growth, and local council parameters that will allow development on a particular site. Understanding zoning and covenants of the town plan will give you knowledge of minimum lot size, setbacks, frontages, floor area, etc. It is important to have a Town Planner who can navigate you through the details.
3) Measuring The Cost & Your Return On Investment
Forecasting expenses and estimating your return on investment will give you a realistic potential and benchmark needed in order to measure your degree of success at the completion of the project. At Shepherd, we conduct in-depth feasibility studies for each of our clients with our abundant industry knowledge and lean on experts in finance and real estate to help you decide which project is right for you to buy or develop.
4) Finding The Right Project Team
Having the right team for your project gives you the best possible opportunity to achieve your project goals and timeline. While the best may not necessarily mean the cheapest, having a team that can meet deadlines efficiently and effectively allows the process to run much smoother and will mean fewer issues during the project’s lifecycle.
5) Ambition & Patience!
A development is a huge endeavour that consumes a lot of time, energy and leads to stress. Maintaining a consistent vision for the end result and being patient throughout the process are two of the best attributes for any developer. We help you to burden the stress of the project, and act on your behalf throughout all stages of the build. We coordinate all consultants, project schedule, legal issues and are out on site to oversee the whole process so you can continue going about your day-to-day life to focus on what’s really important to you such as health, family or career.