Property development is building a property on a piece of land or renovating an existing property, then selling or leasing out the same. It is an excellent way to turn real estate into a viable investment.
While those who have inherited a lot of property may find it easier to venture into property development, others can also do it by buying real property, either land or with improvement, and turning it into an investable property such as a home. To help you out, here are 3 ways that can help you pick a good home so that you will have more chances of being successful in the realms of property development:
1) Choose a good location
Location is among the most important factors when people look for a home. As a property developer, you should make sure that your project is in a location that can attract decent demand.
Residential properties should be accessible to various establishments needed for day-to-day life such as offices, malls, markets, schools, and the like. While landed properties are typically unable to locate within city centers, as these are typically reserved for vertical development, being close to transportation options is a great way to improve the likelihood of your project being taken up. So for best results, check out land or existing house and lots in areas near commercial centers.
However, there would also be a success in building property meant for leisure in locations near tourist destinations such as beaches like in the case of Primary Homes projects near the beaches of Panglao or Mactan, so you can explore this niche as well.
2) Check out homes that you would want to live in (or build one)
A good mindset when choosing a home that you will turn into a property development project is that you should choose one that you yourself would want to live in. With this mindset, you are sure to look for great properties that have little need for redevelopment, saving you a lot from construction costs, and making you very meticulous in assessing your options.
If the case is that you will build a new property on a piece of land, then the same mindset will push you to design a home as if you are the one who will live in it. So always have the mindset that you will be the end-user, and your project will likely turn out well.
And aside from just the home, the neighborhood should also be one you want to be part of. By having a nice home in a nice neighborhood, your project will have more chances of turning into a success.
3) Check the best value for your investment
Since this is an investment, you should definitely be critical of how much your project will cost and take it against the potential returns. Estimating your returns against the cost of buying a property or building a new one, is an important exercise that you should do as an investor or business owner.
So as you look for a home that you will turn into a property development project, make sure to get one with the best value for your investment so that it would be easier for you to recover your expenses and then enjoy the fruits of your investment.
Choosing the right home that you will use to venture into property development is key to being successful in this potentially successful endeavor. While there are just three steps above, doing them will actually take a lot of time and effort from your end. Just like any business, turning this into a worthwhile engagement will need your time and dedication. So give it your all, and turn your property development project into a success.