Frequently Asked Questions
What Does Property Development Involve?
Property development is the business process of buying and improving buildings and/or land. It can typically involve creating new homes, remodeling existing properties, or building, remodeling or improving commercial buildings.
What Jobs Are Available in the Property Development Industry?
Careers within property development include property developer, architect, contractor, and real estate agent
What Does a Contractor Do?
A contractor is a licensed professional who coordinates and supervises all the logistical aspects of a building or remodeling project. They are also responsible for supplying the equipment and materials required for completing the project and overseeing the work of subcontractors, such as electricians, plumbers, and carpenters.
What Are the Most Popular Ways of Getting into Property Development?
The most popular means of getting into property development include buying a residential property to renovate to subsequently sell or rent out, buying a commercial property to convert to residential, and building a second home or commercial premises on already-owned property. Purchasing land to undertake a from-the-ground-up development is also a popular way of getting started within the field of property development.
What Are the Steps Required to Get into Property Development?
A prospective property developer should first decide on their scale. For example, if the plan is to purchase, develop, and sell a single property, this could be undertaken as a side project. Larger projects, on the other hand, may require getting a team of professionals on board, such as a contractor and an architect.
The next step is to get the finances required in place, select a location, and create a timeframe and budget. The final step is marketing and selling the developed properties.
How Do You Decide on a Location?
When deciding upon a location to buy a building or plot of land, there are several important factors to consider. These include looking at the properties currently for sale in the area, properties recently sold, construction costs, price per square footage, and the market demand and outlook.
Research into the surrounding neighborhoods and businesses, as well as other demographics, should also be carried out.
What Are the Risks to be Aware of During the Development Phase?
The development phase of the process can have a number of risks, which can delay – or even derail – a project. These risks include unexpected site conditions, a sudden increase in the cost of materials, and a change in market conditions.