How can you make a fortune in the real estate industry? Well, one of the easiest ways is land development. Most landowners presume that developing land is a taxing operation. However, this is not always the case. The extract below details a few ways that you can make money from your undeveloped land.
1. Land Subdivision
Buyers often shun large parcels of land. The presumption is that these properties are expensive. Besides, they will need a significant amount to put up property on a large tract of land. Land subdivision enables you to market your property to budget investors or developers who want to develop multiple stand-alone properties. Although the land subdivision process can be tedious, your efforts will pay off since smaller pieces of land fetch more than one large parcel.
You will need a lands surveyor when subdividing the property. The professional will examine the property and advise if it meets the minimum subdivision requirements. Most local councils set a minimum plot size. Therefore, the surveyor will establish if your land can be subdivided into two or more plots. If the property meets this requirement, the professional will create a subdivision map. The document details the proposed number of lots and the location of essential amenities such as roads. If the local council approves the subdivision plan, you will hire a subdivision contractor to put up access roads, build drainages and ensure access to water and power. After this, the lands surveyor will follow due process to secure titles for each plot.
2. Selling Off The Plan
Selling off the plan is a perfect option for people who do not have sufficient funds to complete developments on their subdivided land. Assuming you intend to build single-family homes on the subdivided land, selling off the plan is an arrangement where potential buyers put up a deposit before their properties are complete. Selling off the plan allows you to raise funds to complete the development. However, you will need to hire experienced agents to sell the properties to potential homeowners. The contract of sale compels you to complete construction works within a specified period. Therefore, you need to work with an experienced contractor who gives accurate quotes and respects project timelines.
3. Complete Developments
New investors are often worried that they cannot secure funds to put up several properties on their subdivided property. However, most banks will give low-interest construction loans secured with the property titles. Alternatively, you could sell some of the subdivided plots and use the accrued funds to put up the new properties. The underlying principle of any development is that you should go for modern designs with state-of-the-art features. In such a way, you can secure top-dollar for each property. To learn more, contact a unit development service.