Meta Description: What is property development? How does it work? Tim Archibald shares different forms of residential property development from Christchurch.
Tim Archibald | Forms of Residential Property Development
Research shows that property development is profitable, Christchurch from Tim Archibald says, for people who want to achieve higher returns on investments (ROIs). However, property development is a complex process, meaning it requires careful planning and preparation.
According to Tim, a reputable Property Developer at Christchurch, property development is a step-by-step and complex process that involves land or building development. It allows the stakeholders to get the most out of their investment.
Different types of property development projects include converting one kind of property into another, purchasing or building a property on land. Another type of property development is home renovations, remodeling, extension, or improvement projects to increase property value and generate higher ROIs.
It is crucial to know the difference between builders and developers. Many people use these terms interchangeably. Although both share some similarities, yet they are different. Remember, a developer develops, and a builder builds. What does this mean?
According to Tim Archibald, Christchurch, property developers take raw land, obtain permits required, create building lots, install water lines, put in electric cables, construct sewers, and focus on the curbs.
On the other hand, the builder builds a residential property based on what the developer has achieved. Property development is a step-by-step process that involves:
- Pre Purchase Stage
- Negotiating Contracts
- Purchasing
- Planning
- Development Approval
- Documentation
- Pre-Construction
- Construction
- Completion
What are the different forms of residential property development? Today’s article will address this question. Read on!
Renovations
Renovations are a popular form of property development for companies. The primary purpose of the renovation is to restore the state of a house. For example, a home renovation project may include a fresh coat of paint, new light fixture installation, kitchen remodeling, loft conversion, floor replacement, or a complete house overhaul.
Renovations significantly increase the value of a property if performed correctly. Residential property renovations offer various benefits. Not only do they improve the property’s appearance, but they also keep the house up to date, leading to increased comfort, reliability, security, and efficient living space.
Unit Development
Unit development, sometimes called planned unit development, is a broad term that encompasses an entire community of residential properties. A planned unit development may include single-family residences, townhomes, or condominiums.
Although planned unit development includes different residential properties, developers usually focus on houses similar to condos. The primary advantages of planned unit developments are site design efficiency, amenities, reduced costs of street construction, and lower maintenance expenses.
Apartments
Apartments are another form of residential property development. According to Tim Archibald, a professional Property Developer, a real estate developer collaborates with landowners, creates a plan, and builds or rebuilds the property.
Similarly, a developer may also purchase a property and turn it into an apartment. In that case, the developer does not need to partner with landowners. Moreover, developers look for investors and analyze the costs and profits new homes will generate. That way, they perform better construction management, marketing, and project selling.
Land Banking
Land banking is a popular form of residential property development. The process involves securing and acquiring development sites intended for the future. Landing banking allows developers to acquire future development sites at the current price.
Depending on the company’s budget and requirements, it may purchase farms, Greenfield sites, or a large land area. Once bought, a development company puts the site in its “land bank.” The purpose is to have enough land for future developments.
Moreover, land banking is one of the most sophisticated approaches for development companies, allowing them to save money and get the most out of their investment from time to time.
For instance, a development company rezones the land, carries out projects like road construction, infrastructure, and even sells individual lots to generate higher profits. Not only is land banking a profitable approach for large corporations, but it also favors smaller property development companies.
Townhouses
Townhouse development is another common form that focuses on large-scale new property developments and higher density infill projects. Bear in mind that companies primarily target suburban townships and related areas to develop townhouses.
Tim Archibald, Property Developer’s research shows that many people prefer townhouses. That’s why this form of property development eventually generates higher returns on investments for the developers.
Final Words
Property development refers to purchasing a land/house, renovating it, and increasing home value to generate higher profits. Likewise, it involves buying, developing, and selling a property. Until Next Time!
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