Townhouse development is an exciting but daunting process. If you’re a property developer who has tried to build townhomes before, you’ll already know there are many moving parts and factors that affect your profitability. When you invest in property development, you’re ideally looking for a quick return, so having the right support is also a key factor. Working with a quality and licensed builder can help keep the townhouse development cost down, but you still need to do a lot of planning before you go ahead. In this article, we’re going to look at 5 crucial things you should do before you go ahead with any townhouse development.
Understand your financial goals and the market
Every property development project is different, so there’s no set formula to decide if something will work. However, the first step is to understand exactly what you aim to achieve. Property developers usually want to build townhouses that can be sold immediately for a profit. In some cases, however, property developers may be interested in building townhouses for the purpose of renting them out, although this is normally the domain of individual property investors.
Regardless of your goals, the most important thing is to understand what they are. This informs the type of land you can purchase, the number and even the type of properties you can build. You’ll also need a good understanding of the market to determine whether a project will likely make you money.
Check if there will be any issues with planning approval
With every building project, there are local council guidelines to follow. Councils have a range of restrictions, such as zoning laws, that determine whether residential properties can be built in the area. There may also be minimum land sizes for sub-division, building height or materials restrictions, or even vegetation such as native trees that might hinder the process.
Investigating all of these issues before you start can save you a lot of headaches (and potentially lost money) later on. This is one of the advantages of working with experienced property development builders. They know what’s at stake and understand local building regulations better than anybody.
Decide exactly what you intend to build
Once you understand what types of properties are allowed on a particular site, you need to plan what you want to build. For example, is there enough space to build two townhouses? Maybe three? Could you potentially make room for an additional townhouse if you made them all two bedrooms instead of three?
There are so many different options when you build townhouses, but ensuring the project is profitable is important. Even if you’ve already purchased the land, if it seems like you won’t be able to get your desired returns by building, it’s often wise to sell the land and start again elsewhere. As a developer, you shouldn’t let any type of emotional attachment affect your decision-making because you’re there to make a profit at the end of the day.
Investigate your full costs before breaking ground
If you’re happy with the building options available on your land, it’s time to do a full costing of the project. You would already have been discussing this with your builder, but now is the time to get things set in stone. It’s important to consider absolutely every cost, including any that you’ve already incurred during the planning phase.
Full-service townhouse development isn’t the cheapest, but it’s often the most convenient way to go. Experienced builders who work with property developers regularly don’t just make the project stress-free. They also add considerable value, generating cost-savings through their efficiency and network of professionals, so any additional costs usually pay for themselves by the project’s end.
Work with townhouse development experts Brisbane
If the above steps sound complicated, or you simply don’t have the time to manage the smaller details of your development, you only have one option. Builders like Groove Properties aren’t just qualified and licensed builders. They’re also property developers with experience through all stages of the process.
By partnering with an experienced team, you can leverage their skills and knowledge to get all the help you need. You can even ask them to take over the process right from the start. It’s a great way to relieve some stress, making it much easier to focus on what you need to.
Choose Us for Seamless Townhouse Development in Brisbane
If you’re considering property development, you need a quality builder for property developers. Groove Properties offers a dedicated property development service. We’re builders and property developers ourselves, so we understand the market and the real estate landscape. We appreciate the intricacies of townhouse development, specifically the need to keep costs down while still delivering a high-quality, appealing product.
Groove Properties can assist you with everything from start to finish, offering a complete end-to-end solution for experienced property developers. From feasibility studies and land acquisition to construction completion, we can take care of everything and keep you in the loop every step of the way. Don’t trust your investment with inexperienced operators when you could partner with a team that can successfully complete multiple townhouse developments.
Whether you want to build in Camp Hill, Holland Park, Woolloongabba, or any surrounding area, we’re the team to call. Contact Groove Properties today, your trusted partner in townhouse development.
