Things to Know About Residential Property Development
Residential development is the development of residential properties, often multi-storey buildings, that are meant for the permanent occupation of an individual or family. Commercial development, on the other hand, is designed primarily for the development of business premises.
What is Residential Property Development?
An important thing to remember in regards to residential development is that it is a relatively expensive affair. Developers have to take into account not only the costs involved in land acquisition but also expenses such as building furnishing, electrical wiring, plumbing, septic tank and drainage system. The market itself is very competitive and developers usually aim for yield, which means that they earn a considerable return on their investment.
Some residential developments are designed to cater to a specific segment of the community. For instance, projects aiming at students tend to be very different from developments designed at working-class homes. Hence, residential developers have to tailor their plans to suit the needs of the target audience.
The residential development process starts with the analysis stage. This is the stage wherein property owners decide whether to pursue the project or not. This is a very vital stage because it sets the tone for the rest of the process. For example, if the project proposed does not meet the expected outcome, property owners will have the option to withdraw.
One of the critical stages is the negotiation phase. This is where the details of the project are negotiated with the owners. This is often the most difficult part of residential development projects. Owners often feel that they have been taken advantage of during the negotiations and may have been pushed into taking a decision that they did not want to. To avoid this hassle, residential development projects employ experts in the field.
According to Progressive Property NZ, one of the main issues that property owners face in taking up a residential development project is the lack of parking space. Many residential development projects also develop townhouses that have two to three units on them. This allows the property owners to have extra space for visitors.
Another major issue faced by owners of apartment complexes and townhouses is the availability of utilities at the site. Developing lots with one to three units usually requires digging trenches for the septic system.
Before taking up a residential development project, it is important to check on the existing utility lines to ensure that they will still be available when the project begins. Most developers and real estate development teams do this for free. However, it may be worth paying a small fee to professionals to do this work for you. You could even get a good referral once you see the site plans and check out the depth and width of the trench.
The developers also have to consider the regulations and rules of the community, as well as those of the state. Developers need to follow strict guidelines set forth by the state. Some communities do not allow for large apartment buildings. Developers have to consider all these factors before taking up a residential development project. The developers have to keep in mind that residential lots can be quite expensive. They also have to consider the amount of traffic into the area, as well as any potential traffic problems or hazards.