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

Crucial Steps On How To Assess A Property Development Feasibility

Profile Picture
By Author: Adam Leworthy
Total Articles: 100
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Property investors always lookout for the next best lucrative opportunity to look for innovative ways for discovering hidden gems in the Australian real estate market that promises of higher ROI. On the other hand, you could also be looking to generate rental income by bringing changes to an existing property.



Or perhaps, you might have found a potential land where you are thinking of making an investment which would attract affluent purchasers. But, whatever you do, a property development feasibility study is of utmost importance. With that being said, take a look at some of the crucial steps to make sure you build a solid plan with better projected ROI and minimum hassles along the way.



Determine the gross revenue (post-sales)



The first step will be to have a clear idea of the gross revenue of the invested property. With the present scenario of the real estate market, it is bound to take a severe hit. However, the market is set to change ...
... within the first quarter of 2021. Therefore, make sure to hold a leverage on the local real estate data and, project the cost of development beforehand. Then hold talks with the local contractors and agents to fathom the projected return.



Assess the overall cost of the project



The second most important step is to gauge the overall cost of a building project. That will come under the property development feasibility study which will take into account all the extraneous costs and even the contingency fund as well. Furthermore, you must also assess the realistic return of investment of the ongoing project by listing all the investments made. That includes –

Cost of that particular piece of land
Price of the building materials
Fees of the building contractor
Cost of hiring interior designers & architects
Associated costs, etc.

Once these are listed, it is time for you to subtract the projected cost of development. This will give you the gross income.



Consult with the property development officials



When you are considering of conducting your property development feasibility test, you are bound to come across professional team of experts who will help you in finding whether the proposed building project is feasible enough!



Feasibility studies are one of the most crucial aspects that investors need to conduct so that they have an actionable data at their disposal. It is also essential to consult with a property development firm that has experience in this industry and knows it from inside out. Only with working with an expert team can you eliminate all shortcomings and mitigate all threats!



Look for funding options



Finally, it is time to analyze all the available funding options that will help you to materialize your dream. Make sure you have enough working capital at hand before kick-starting your project. If you are falling short of liquid cash, make sure to avail funding from reputed lending institutions. You can also consider procuring advances from commercial mortgages (whichever works the best).



Lastly, building am emergency fund is of paramount importance. No matter how successful the property development feasibility study was, your dream project can come to a halt at any given instances considering the volatility of the current real estate market. Therefore, it is absolutely essential to have a backup resource to keep the project from getting stalled. Also, make sure to use the above mentioned tips and advice to figure out if an opportunity is like once in a lifetime offer or can it be passed for some better prospects in the pipeline. Remember to remain cautious at every step of the way and maintain a cordial relation with the local authorities for a speedy & hassle-free process!




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: 92Word Count: 639See All articles From Author

Add Comment

Home and Garden Articles

1. Why Do We Need An Air Conditioner?
Author: Ashwin kotia

2. Semi-precious Stone Furniture – Turning Places Into Royal Spaces
Author: Attrattiva

3. Why Do You Buy Solar Stor Residential Solar Water Tanks?
Author: Latitude51 Solar

4. Office Deep Cleaning Services In Thane – Sadguru Facility
Author: Sadguru Cleaning

5. Gas Geysers – What You Need To Know
Author: Livestainable

6. Pickup And Delivery Service By Laundry Professionals In Dubai
Author: Image Laundry

7. How Sidewalk Repair Contractors Remove The Dot Violation?
Author: Alex Jhon

8. Bring The Indoors Out - With Outdoor Rugs
Author: Pyeong Chin-Mae

9. Home Decor That Won’t Cost You A Fortune! Ideas That Will Glam Up Your Home Renovations In Ballarat
Author: Dracon Ballarat

10. Ultimate Guide For Safe House Cleaning
Author: HomePlus

11. Cleantel Announces Quality & Affordable Prices For Kitchen And Sofa Cleaning Services In Dubai & Sha
Author: Black Infotech

12. 6 Things You Should Know About Upvc Sliding Windows
Author: duroplast

13. Various Garden Tools And Their Utilities As Per Your Needs
Author: Minute Garden

14. How Do You Make A Dream Kitchen?
Author: Homular

15. Lori Girl Creations
Author: Arya Potts

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