What makes a development property great

What makes a development property great

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What makes a development property great

14 Feb 2017

defaultimage Although a development property can be an amazing investment, there are a wide number of variables that can eliminate and profit and turn a sweet opportunity sour. With decades of experience in the building, Sovereign Building Company has learnt just how to spot the good fruit from the bad. We have developed a number of measures that ensure our clients don't fall for a property that will leave them high and dry.

Our Full Project Feasibility Report is an insight into the overall profitability and workability of an investment project. From small home builds, all the way to larger developments, we present our customers with an overall breakdown of the project's strengths and weaknesses, providing the estimated costs, income and profit margin. This is done all before our customers spend 1 cent with us.

Below are a few of the elements that we look at when estimating a project's profitability. These are things that can add costs, diminish the selling price, extend a build time or just make it physically hard to build, all of which will affect how valid an investment it will be.

Cooperative council

Our first point of call is often to look at the build and zoning regulations specified by the council. By outlining the do's and don'ts of a block or existing structure help us to draft the possible ways that we can add value to an investment. A council can often restrict property sizes, design styles, block carvings, and more.

Development Possibilities

Before any money changes hands, and a property is purchased, we always suggest "carving the block" to see just what can be done with it. Is there space for two or three townhouses? If we build an apartment block, how many stories are allowed? Is it worth sub-dividing, or is it better to build and sell a larger home? To us, a piece of land is similar to a canvas. It is filled with possibilities.

Do you have the time

The correct amount of research required to find the best opportunity often requires more time than what people are ready to give. Knowing your ideal completion date is essential in getting a clear budget estimate and idea on the final selling or rental price. A job that stretches over time can result in a higher price tag, but jobs that are rushed can also run the risk of sloppy work, or mistakes that need to be fixed. At Sovereign Building Company, we have become so confident in our ability to complete builds on time, and at the highest standard, that for every week our builds go over the deadline, we will pay you. Are you that confident?

If you are on the hunt for the perfect investment opportunity, planning your own development, or want to learn more about our FREE Full Project Feasibility Report, complete this form or get in touch.

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