Property development is no stroll in the park

system and inclusive Government.
One of the key indicators has been the announcement by Turnall that it was projecting US$300 million profit by 2015 from the sale of its asbestos-cement roofing, water and sewerage conveyance products.
This is a staggering figure that is beyond the projection of many whose minds are focused on bread and butter issues.
This article is intended for those who dare to dream and would like to benefit with others when the inevitable property boom arrives.
Property development, according to Wikipedia’s definition is a multi-faceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others.
Developers are the co-ordinators of the activities, converting ideas on paper into real property.
Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards.
Developers purchase a tract of land, determine the marketing of the property, develop the building programme and design, obtain the necessary public approval and financing, build the structure, and lease, manage, and ultimately sell it.
Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, estate agents and more.
One can easily choose to become a small developer whose focus is on small tracts of land where one builds houses or improves houses for purposes of generating a profit at a later date.
This is the crux of property development. Its simplified definition is adding value or creating value.
There is a prevailing misunderstanding by some supposed “property developers” who feel that just because a property has gained in value over of time, they now qualify for the term property developer.
It is completely misguided because in most instances surrounding properties will also have gained in value thus nullifying the supposed gain as one cannot replace the property with a better or similar property on sale.
A real developer will still make a profit after increasing value regardless of whether the market is on a slump or boom.
This might at first glance seem annoying but it is critical to understand that a seasoned developer makes profit at purchase of property and not after selling.
A seasoned developer makes a profit when buying because he pays the right price value at or below the market, which will certainly insure that when the time to sell comes, the developer has pocketed a few dollars if the property was purchased at below market value.
It will be remiss of me to leave it at this one scenario without giving situations where paying above market values can make business sense. Some situations might require inducements to property owner’s where they are in possession of prime land or property which when developed may bring a considerable or substantial profit to developer.
In such cases it is not uncommon to offer to a property owner amounts that are above valuation figure as an inducement to sell. However, such decisions should never be made indifferently without thoroughly researching or seeking professional advice.
Property development is capital intensive regardless of where one chooses to develop.
As such, it is critical to carry out thorough research in all situations and not only when buying at high cost.
This involves carrying out a study of an area, which may include the success and failures of previous developments.
Any restrictive covenants or encumbrances attached with sell.
Note which covenants will derail your development plans and which ones will ensure a good market value after development, thus a return on investment.
It is critical for any one intending to delve into property development to seek professional assistance. The door to wealth in property development is just as wide as the door to loss and despondency.