123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Home-and-Garden >> View Article

3 Essential Steps To Determine The Feasibility Of A Property Development Project

Profile Picture
By Author: Adam Leworthy
Total Articles: 80
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

So, what is property development?



Is it a business? Or rather, order that make sure your business is worth pursuing for! And, for that a property development feasibility test is mandatory.



Before conducting any sort of construction project, a comprehensive feasibility analysis is essential to analyse whether the project is financially feasible and technically viable within the accumulated working capital.



But there are various forms or methods to conduct such feasibility analysis. In order to do that, you must follow a three step guideline, that will help you achieve your goal with minimum hassle!



Step 1: Conduct extensive market research



For any kind of building or construction project, it is crucial that you ensure the type of project that you actually want and, the available resources at that point of time. Furthermore property must appeal to your target clients and, must be within your investment range.



The first and foremost is to get familiar with the kind of neighbourhood you are dealing with. After that, check out the services and immunities that would entice your buyers to your proposed project.



It is an essential step of market research who are you approach a local real estate agent and survey the best selling areas in the neighbourhood. Also, take a detailed note of your property development feasibility study.



Step 2: Consult with a professional team of property development



Always keep in mind that, property development is not a one man show! you have to be a part of a team of special is an expert who will guide you through the entire feasibility process. Due diligence is required at every step of the way as a mistake from one part could cost you the entire project.



Some of the members of the team that you should consult with are:

Property accountant


Consult on the best structure to purchase as a property and to event the text implications while development of a project it is in your best wish to keep good faith with the property accountant.
Architect


Meaningless to say but still worth reminding – an architect is a crucial piece in the entire puzzle! So, build a rapport with him/her.
Solicitor


While you conduct a property development feasibility study, a solicitor will assist you to keep in check of all the restrictive covenants and ease the drafting process for you!
Real estate agents


They will help you to determine the value of your construction project and also make sure the rental returns are completed after the project commence.
Among others, there is the bank representative, surveyor along with other professionals who take an active part in successful implementation of your proposed project.


Step 3: It’s number crunch time!



While figuring out the profitability of your building project, it is essential to run the numbers as it is one of the core aspects of your feasibility study. Some of the aspects you should look into are –

Cost of construction
Professional and council fees
Purchase price of the project undertaken
Marketing and finance costs
Holding and additional costs

This is a crucial step in your property development feasibility test, put the best mastermind to figure out how much you can receive as expected returns!
It is advisable to consult with a professional planner to gauge the feasibility of your project from the very first step. Also, you would be getting the necessary assistance at every step of the way like, whether you have enough profit in the deal to move on with your project or back out.
This is all the information that you need to know as of now!




About the Author: If you would like to know more about the Property Development Feasibility then please take a moment to read the contributions made Adam Leworthy.

Total Views: 21Word Count: 623See All articles From Author

Add Comment

Home and Garden Articles

1. Residential Painting Contractor-a Great Way To Transform Your Home's Interior & Exterior
Author: Martha Navas

2. What Are The Different Types Of Bed Bug Exterminator Treatments Used Today?
Author: David Alexander

3. Why Flowers Are The Best Item To Decorate Your Home
Author: Ashutosh Verma

4. Get The Best Quality Timber And Oak Flooring Products And Accessories
Author: Chloe Winson

5. Everything You Should Know About Swimming Pool Heat Pumps
Author: Kajal Hedav

6. 5 Marble Slabs That Makes Your Bathroom Design Look Elegant
Author: Hemani Singh

7. 5 Best Kitchen Marbles For Perfect Kitchens
Author: Sipani Mables

8. Welcome To New Beginnings: Why The Neo-modern Idea Is So Important To Modern Way Of Living
Author: Ramesh Sharma

9. How Much Should You Pay For A Mattress In Australia
Author: Mandeep Singh

10. What Is The Importance Kitchen Sink To Every House?
Author: Divya Verma

11. Aluminum Garage Doors Are The Best!
Author: Jose Gordan

12. How Does The Scented Air Filters Work?
Author: Mark Joshua

13. Design Tips For Living Room
Author: gunjan gupta

14. How Do You Know The Location For My New Hot Tub Installation?
Author: Cedar Barrel Saunas

15. Home Disinfecting: How To Keep Your Bedroom Clean
Author: ServiceMaster by Wright

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: