A common first question we get asked by clients when considering potential projects is: “Is this project worth proceeding with or are we just wasting our time”?
The goal of this step is to understand whether the project you are considering has an Excellent, Good or Marginal level of confidence to proceed.
Note: If you haven’t already, it may be worthwhile reading our Property Development 101 introductory article before reading this article.
Property Development Step 1: Assessment
You’ve probably heard it said that “one has to spend money in order to make money”.
Obviously one does not want to spend too much money early on only to find out later that a project is not feasible.
Without delving into the myriad of variables that can make or break a project, for smaller projects (under $2m) here are some basic fundamentals that we recommend that one assess at the commencement of any project:
Client Brief:
- What are you wanting to achieve?
- What are your priorities?
- What is your budget/timeline?
Legals
- What is legally on Title that can be developed?
- Are there any encumbrances, covenants or caveats that might pose a problem?
- What does the Copy of Plan (of Subdivision) reveal about the subject site?
- What are the dimensions of the subject site boundaries?
- What orientation is the site and how might this factor into a proposed design? Are there any easements?
Planning:
- What are the State and Local Planning Policies & Overlays that apply to the subject site (eg. Residential 1 zoning? Business 1 zoning? Heritage Overlay)?
- Has the local council identified any Neighbourhood Character guidelines that may be pertinent for future development?
- Has the local council identified certain ‘zones’ that prefer the proposed development?
Existing Conditions:
- Where are services (electricity, plumbing, gas) and other potential assets (power lines, drain holes, fire hydrants, Telstra service points, crossovers etc) located?
- Where is/are the existing building/s located (if relevant)?
- What is the slope of the land?
- Presence of any significant trees or other features?
- What are the adjacent neighbouring properties like? (eg. any potential Private Open Space/Overlooking issues etc)
- Any precedent for development/subdivision in the neighbourhood?
Conclusion
This list is by no means exhaustive but forms the foundational questions we would recommend asking of any potential project.
We will investigate in the next article, Step 2: Strategy, how to marry these findings with feasibility calculations and develop a strategic Property Development Business Plan for your project.
Considering Developing?
Ensure your project ticks the boxes – before you start.
Ask us about our Property Development Assessment!
Related links:
- Property Development 101: Introduction
- Land Titles Office of Victoria
- Department of Sustainability and the Environment Planning Schemes
- Dial Before You Dig
- Google Maps
Subscribe via RSS
Follow us on Twitter