Once you create a subdivision, you face the daunting task of developing the property. Although expensive, strata unit development is one of the most profitable real estate ventures. Below is a guide on how to build your strata development.
Market research should form the foundation of your strata development project. Your research should find out the following:
- What are the land subdivision laws in the area? They could compel you to build access roads, ensure proper drainage systems, and install essentials such as water and power.
- How does the building code affect development works? It could determine the type of foundation used, choice of construction materials, and building height. You could also be required to install essential safety measures.
- What types of properties are in demand in the area? For example, could be the location is ideal for apartments, single-family homes or townhouses.
- What is the approximated property appreciation? It will play a significant factor when budgeting for the project.
Financing your strata development works can be a headache. However, there are several ways to raise quick cash for your development project. For example, you could ask a development company to invest in the project or sell properties off the plan. If this is not possible, take a construction loan from your bank.
Plan Your Development
Planning is an essential aspect of any strata development project. Typically, the plan should detail how you intend to complete the construction works. Engage construction professionals such as engineers and quantity surveyors when formulating the project timeline. It ensures you allocate adequate time for the development. Remember to anticipate hurdles such as delayed government licences or poor weather that could slow down or halt the construction works.
Work With An Experienced Contractor
The contractor probably the most essential play when developing your strata unit. Below are some tips to help you choose a contractor:
- The professional should have been involved in strata development works in the past. In such a way, they can bring experience and offer valuable advice when planning the works.
- Interview the contractor's clients to know how the professional interacts with clients and the quality of services that they provide.
- The professional should have adequate finances to commence the project. A cash-strapped contractor will be more concerned about their pay as opposed to the quality of works.
- The contractor should have reasonable pricing. Additionally, they should advise on cost-cutting measures such as purchasing materials in bulk or using cost-saving technologies.
When you're ready to begin the unit development process, be sure to conduct market research, assess your financing options, plan the development and work with an experienced contractor.