How to Find a Development-ready Property?
Michael Yardney writes a piece for Property Update wherein he discusses what makes a property a profitable venture as a development site. Before everything else, the requirements and protocols of the local council have to be understood. Once you are through with them, you can go about measuring the development potential of a site and it can be done this way:
- Does the dimension of the site make it perfect for development and moreover, is it a corner site that can be effectively subdivided?
- What is its orientation (for instance, does it have north facing windows)?
- What may be the possible issues surfacing from its demolition (for example, if there is asbestos to be tackled or if it is a heritage site with its own set of rules)?
- What is the slope of the land and amount of natural vegetation in the proximity of the site?
- What kind of properties do your neighbors possess (are they largely single storey or double storey and how do they face up to the new development)?
- Is the soil rocky or sandy, and what are the chances of soil contamination?
- Will the site readily lend itself to construction or is it in an inaccessible area?
- What are the encroachments, easements or covenants in the area?
Sites with development potential
Many properties make great homes but only some of them are investment grade ones and even fewer are perfect as a development site. It is your duty to conduct due diligence.
You can read the original article here.
Sydney has felt the heat for long in terms of development-ready properties. Other capital cities have met a similar fate and this has largely been because of chronic under-supply. It is true that the explosive population growth (partly because of higher life expectancy and net interstate migration) has made it difficult to procure development-ready properties. Yet, you must not dilute your standards while selecting one. The above bulleted points can work as a guide.