Having clear project goals allows you to remain focused on adding value to your project. This applies to all areas of the development from your property rezoning (town planning permissions), to obtaining development approval and especially applies to the delivering a completed product during the construction phase.
It is also worthwhile to keep the value of your development in your mind at all times. By setting financial goals for various stages of your project, you can plan a value-based exit strategy at numerous points along the way.
Here are five important questions that will help guide you when setting your project goals.
What is the value of a property with development rights compared to the same property that has not been rezoned?
What is the development potential based on the property location and amenities?
Have there been any recent improvements made (infrastructure upgrades, nearby ‘feeder’ developments, etc.) or is there a potential for improvements in the near future?
What are the local demographics in terms of employment numbers, affordability of users and other market pressures?
What are the real estate economics in the area? These include supply and demand numbers of similar products as well as competition.
Tip: To find out more information on the development potential of your property, it may be worth commissioning a Market Research Study.
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