Property Development & Investment Queensland – An Introduction
Property development and investment can encompass a wide range of activities from purchasing land to building and developing facilities. Becoming a property developer can be as simple as buying a block of land and building a house or buying an existing house, knocking it down and building another.
One way to describe property development is to continually reconfigure the built environment to meet society’s needs. Becoming a successful property developer and investor requires time, research, patience and the willingness to take calculated risks.
Getting Started
Property development is not a recipe for quick, easy money. It’s a risky business that involves continuous learning. Most people start with residential property. The first step is to educate yourself as much as possible. Do plenty of research, talk to people, and look at what others have done. It may even be worth enrolling in formal education.
As a property developer, you’re an investor committing your equity, expertise and talents to convert property from its current use to a higher and better use. Successfully doing this requires more knowledge than most people give credit for. You’ll need to educate yourself on property, economics, finance, town planning, the markets, construction processes and real estate marketing.
Where to Develop
Location is one of the most important aspects of developing and investing in property. Once again, research is the key to success here. You need to look for areas that are experiencing a growth phase, where there is an expanding population and demand for housing.
Consider the proximity to shops, schools and public transport. Developers should become familiar with the development plan of the relevant council, which will offer an insight into what is wanted and needed in the area. You should also think about other aspects of the land you purchase. For example, things like soil quality, topography and natural obstacles can all affect the value and development potential of a site.
Finance
Most property developers fail because of funding issues. New developers should expect to put more of their own equity in a development to keep banks happy. Investors should be involved at every stage of the development process so you understand their position, expectations and requirements at every turn.
If you are borrowing money, the banks will require you to have security. If you’re starting out, they’ll need a greater level of security, which means you’ll have to put more of your own money into the project. Remember that it can take between 12 to 24 months from the time you bought the land to see any income from the development. Ensure you can manage your cash flow and debts until and beyond this time in case of any delays.
Council Approval
It’s crucial to speak with the an experienced and qualified Town Planner before making any commitments. They can determine if there are any zoning restrictions and whether you can subdivide if you need to. A land surveyor will help you map contraints and opportunies, prepare proposal plans & bring development to fruition post-approval.
You should consider what type of title you want issued for your land. A Torrens Title, for example, is a title in its own right that can offer better returns. Community titles, which share some common property like a driveway or water connections, can help keep costs down. Your land surveyor will help you determine the best type of title.
Who to Talk to
Once you’ve confirmed the land titles, you can begin making plans to build. Embarking on a development project involves consulting and working with a variety of professionals, often the Town Planner will act as a project manager to assist you with the project.
Depending on the complexity of the project, this may include:
- Real estate agents
- Finance strategists
- Accountants
- Lawyers
- Town planners
- Development consultants
- Architects and designers
- Engineers
- Building contractors
- Construction managers
Development Consultants in Queensland
In Queensland, if you’re looking for a development consultant you should consider contacting Arnold’s experienced and qualified land surveyors and town planners. With more than 50 years of experience in town planning and surveying, our consultants can help with a range of development projects all across Queensland. Contact us today.
