There’s nothing quite like property development. From choosing the site location to creating a lasting positive impression on the community and your buyer or tenant, investing in property developments can be very fulfilling venture. The best part? You don’t have to leave your current job to focus on your investment venture.
You can hire skilled property developers such as Hylton Constructions to do the heavy lifting for you, while still enjoying the returns on your investment. Click here to get in touch with one of Melbourne’s finest residential property developers.
If you are just beginning your research into property development, a great place to begin your journey is at the start of our series. We have discussed all things property development, including what it is and why it is such an attractive industry. If you’d like a recap before moving on, click here to read our in-depth series into property development.
Alright, now that you have a good idea of what the property development industry involves, let’s move on. Suppose you have worries that your property development project will one day become obsolete – don’t! Not only will real estate forever be a human-need, but we will always be here to advise and work with you to ensure that you succeed. Check out some of our past projects.
Whatever route you decide on to undertake your property development: including subdivision, extending or enhancing an existing property, or buying land and building property on it – you will always have a market. This is as long as you have the passion for the subdivision plan or property development element you choose, and you have a good property developer on your side.
Okay, now let’s dive into the juicy parts of this guide.
Our Builds in the Balwyn Area
What are the Stages Within a Property Development?
Whether you’re thinking of a multi-unit development or similar property development, there are several stages that you will go through as an investor. If you’ve ever experienced a home building timeline step by step, you know that Rome wasn’t built in a day. As a property investor, you will be involved in many activities and processes, including purchasing land, building and developing your residences, and everything in between.
Although you will have a professional property developer doing most of the work for you, it’s good to educate yourself on how the industry works. Besides, you need to ensure that your educated enough to enlist the help of a property development company that already has a great team or network. Some of the professionals to expect in a great team include a Quantity Surveyor, Land Surveyor, Architect, Engineers, and a Town Planning Consultant.
So, what are the stages you’ll be involved in? These are some of the stages you’ll be involved in as you move along the process. Most of these activities can be handled solely by your property developer, but if you like to be hands-on and involved in the process, here is what you can expect.
- The Pre-purchase Stage
In the first stage you’ll secure your funding, select your team of professionals, ensure that the site is suitable for development, and undertake a feasibility study. Having a feasibility study done will save you a lot of time and money as it will give you and your property developer insight into how to carry out your development.
- Negotiating and Purchasing
Here you and your property developer negotiate prices and draw up contracts that best suit your development. If you haven’t already purchased the property, this is where you do it with guidance from your property developer.
- Town Planning & Approvals
Remember how we said that you need to educate yourself? Knowing about the council guidelines will get you a long way even while working with a property developer. This is also the stage that your developer secures development approvals for your multi-unit build, townhouses, apartments or other project.
- Working Drawing and Documentation
This is the design stage. The architect will work with the brilliant engineers on your development team to create the working drawings to bring out your vision for the development. After that, you now get approval for your designs for the type subdivision you desire.
Here is where you have to choose the right builder for your project. The best deal would be to get a property developer who is also a home builder. This will save you a lot of time and increase efficiency. Click here to get in touch with one of Melbourne’s premier residential builders and property developers. Having a professional with experience in home building will be an added advantage.
This part will test your patience and make you grow both as a person and as an investor.
This is our last stage, and it often involves you beginning to get back your return. You can choose to either sell your subdivided abodes or turn the property into an investment.
How Long Should You Expect a Property Development to Take?
The answer to this question is hugely relative to your specific development project. However, the 6th stage above is the one that takes the lion’s share of the time. But this is only the case when there are no hiccups in the other stages.
When it comes to the construction stage, the process often averages between 7 to 10 months, depending on your project’s size. This stage has so many moving parts that it is crucial to choose the right property developer. Having the right professionals on your project will ensure that all runs smoothly. Click here to get in touch with our experienced team of property developers at Hylton Constructions.
There are multiple reasons that can cause your property development to take longer than expected. When it comes to the construction stage, there are some causes of delay that you may encounter, including the following.
- Inadequate planning and scheduling
- Delay in revising and approving the design documents
- Poor coordination between the parties
- Financial problems
- Variations in the design and scope
- Delays caused by natural calamities
- Contract modifications
- Labour disputes and strikes
The main reason that the construction stage is the most volatile and the most likely to cause the property development process to delay is that it involves many parties who have to work well together. Sometimes the productivity of these parties is out of your control. This is why we strongly suggest choosing the right professionals for your project. Click here to contact Melbourne’s top home builders.
“Hylton Construction delivered on all levels. They offered professional, communicative, high quality service and skilled tradesmen. The end result is a quality home we can enjoy for years to come.”
How Can You Optimise the Timeline for Your Property Development?
As we’ve mentioned above, an important step to optimise the timeline for your project is to ensure that your team consists of efficient, honest, ethical, passionate, and goal-oriented professionals. In short, choose an experienced property developer that possesses a proven track record of getting the job done. Click here to check out some of our finest completed projects.
After working on many property developments, we understand the importance of working within your budget and the set timeline. Nothing is as frustrating as going off-schedule due to avoidable circumstances. So how can you ensure that you successfully stick to your timeline? The first step is to plan ahead and ensure that there won’t be any surprises moving forward.
You can do this by:
- Visiting your target area’s planning department’s website to feel how much of a priority the property development industry is for them. This will give you an idea of how much cooperation you will get from them.
- Having your property developer do some groundwork by talking to locals who have had prior interactions with the planning department.
- Researching the area’s social climate ensures that there will not be unnecessary roadblocks due to upcoming community activities.
Want more info?
What Stage is the Most Enjoyable Within the Development Process?
We’d be lying if we said that every step of the property development process is like a gentle stroll in the park. You will undoubtedly encounter some challenges, but the important thing is to keep on going even when you meet some hurdles. Nonetheless, there are many exciting moments along the process of carrying out your development project, especially during the construction stage.
Please note that the most enjoyable stage will be different from person to person, depending on what you like doing. If you enjoy the thrill of negotiation and bargaining, you will love the first three stages: pre-purchase stage, negotiating contracts & purchasing stage, alongside town planning & development approval. These three stages can involve some research, but you can get your property developer to handle the nitty gritty bits for you.
If you like being stimulated and at the centre of the action, you will enjoy the construction stage. You can always go and check the progress of your property developer on site. Also, it is the part where you start to see your vision become tangible. Even if you plan to carry out a subdivision plan and sell the property right after, you will surely enjoy seeing it come to life.
You will need to choose a competent property developer that you trust with your property. Click here to get in touch with a proven property developer with a track record of success.
You will certainly enjoy the completion stage, in which you finally receive the fruits of your hard work. Through your development of the property into an investment, this will continue to satisfy as you will generate passive income overtime or gain a quick profit by selling the property. Click here to read our in-depth article on the “must-knows” of maximising profit as an aspiring property developer.
We hope you’ve enjoyed this guide and have learnt a thing or two about the stages involved in the property development process from pre-purchase to completion. Remember to place great emphasis on selecting the best property development team for the job!
Although you may encounter a few roadblocks here and there, having a strong mindset and equipping yourself with knowledge about the industry will go a long way in aiding your success. If you’d like some more advice on property development, or you’re looking to commence a project, please get in touch with our friendly team here.