How do I develop land?

Land is an extremely valuable resource that can create long term cash flows. Developing land is one of the most fulfilling property investments one can do, though for some it is considered too complex to even consider. At Alpha14, the number one FAQ that we receive is ‘how do I develop land?’. The answer is simply there are various stages of a development process. This may be daunting for some, and often causes people to shy away from developing – which is why we have decided to break down the process into 7 simple stages.

1， Plan your development

With anything new, you should always plan. It is important to have a thorough development plan so that you will have a clear direction. It is also important to closely research the market on where you plan to invest – this includes research on developments and similar real estate in the area and its surrounds.

2，Undertake a feasibility study

Once you have an idea of where and what you would like to develop, it is necessary to undertake a feasibility study. Understanding the potential costs and return will provide guidance on your investment. Alpha14 has the capability to undertake the feasibility study for you.

3，Acquiring the land

At this stage, you will have to decide how much you are willing to spend to acquire the plot of land. Here, the feasibility study will help you factor in the end value of your development into your purchase price.

4，Design & Development Stage

Once you have acquired your land, an architect and town planner will draw designs based on your concept for the site. These drawings will follow the council as well as any zoning restrictions in the area. It is also necessary to engage different types of engineers, such as a geotechnical engineer to consult on the conditions of the soil, as well as a structural engineer to create a functional building. It may also be necessary to engage a quantity surveyor to aid with securing a loan. Alpha14 has the ability to engage all of the necessary consultants during the design stage of the development. Once all the design stage is complete and the building permit has been acquired, the next step is to choose a builder.

5，Choosing a builder

There are many builders to choose from and the challenge is finding the appropriate builder for your job. At this stage, it is necessary to put a tender to market. Tender documents include the final working drawings, project specifications, materials, and the project’s fixtures and finishes. Afterwards, builders should be shortlisted based on their pre-qualification and then meet each builder to determine who is the most suitable for the project.

6，Construction Phase

Once a builder has been chosen and contracts have been signed, the land is on its way to be developed. This phase is a time-consuming process, and it is necessary to maintain communication and liaise with different stakeholders involved in the project. Alpha14 has the development management experience to manage and oversee all stakeholders involved during this phase.

7，Post Construction Phase – project completion

Once construction has been completed, you may submit a Plan of Subdivision for each dwelling.

At Alpha14, we have entered into successful joint venture partnerships with land owners and families looking to develop land that they already own but do not have the necessary capital or expertise to. We also offer development management services and can manage a project from the site selection stage right through to the post-construction phase.

For more information on land development, or the services that we provide, please get in touch at projects@alpha14.com.au