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PROPERTY DEVELOPMENT
In the feasibility study is a development appraisal which will have all costs included in the development and will enable you to calculate the end profit margin for more costs involved and estimated amounts and revenues. This will result in the subject of a sensitivity and risk analysis being provided to the funder and to potential investors and will give it to information as to the viability of the project. Adjustments can be made to a particular project at any point through the feasibility and eventual design and build stage. Output from this phase should include components not limited to a decision to develop a decision not to develop a particular project or in a certain time frame.
The next important step is the design phase and planning application. To gain planning permission to build a desired building in this on the site usually from the local authority maybe is central to the overall development projects. The proposal for a property developer must be acceptable to an authority and its planning department and you must follow guidelines which they set out. This can come from a outline planning application or even a pre-application meeting and you have a good idea of what will be acceptable to the councils planning department before you build.
To an extent the price of the site is dependent on existing forthcoming planning status. The value of an end product will be highly contingent on the type of planning that is given many landowners will seek to give outline planning permission to the sites to enable an end buyer to adjust the planning permission to the exact requirements. To gain an agreement or make changes to a site planning application developer must be in contact with the local authority and negotiations can include the size, nature, function of the buildings being considered for this site and iterations can be made going forward with the advice of the council. Matthew Cullum property website has further information if required on obtaining planning permission whether it's outline or full planning permission.
The design process is also key and should be undertaken by professional planning consultants. They can involve sub-steps including conceptual design including general layout and external physical designs. Also the design development which is taking conceptual design and reducing it to the specific Tis of a drawing which the construction drawings can be produced from. The construction door drawings can be further developed to a level of detail costed priced and scheduled by contractor. Numerous specialists in the design team and other professionals we can provide advice to further adds detail to a construction design and drawing.
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There are multiple stages property development which all very important and should be considered before embarking on any development project. These phases can include identifying the site, identifying the feasibility and doing a feasibility study, financing and funding arrangements, professional appointments, the full planning application process and design statement.
Perhaps the most important process at the beginning of a project is the financing which usually requires short-term finance in order to purchase the site. Short-term finance is required to pay for the property development process of acquiring the site. This can comprise of expenses, site construction, marketing fees, professionals and eventual lettings and sales costs. Getting the right type of finances key and you should always have a key broker in place to help you find the right finance and the best rates. The best terms can be a complex and specialist activity and it's necessary for property development in all circumstances. The availability of debt finance can have a considerable consequence on the development and the success of the project will rely solely on this. Selection of a simple funding structure will ultimately reflect on the end values of the development and the property is being built. There can be a mix of financing methods utilised by the developer which can include bridging and ultimately construction finance.
If the developer wants to hold the completed building for rent or buy to let purposes the long-term finance can also be utilised. The ability to refinance the project reduces the risk of all developments as it gives you the opportunity if you cannot sell at the prices required to hold them long-term waiting for potential values to increase and to make money from the income of a buy to let. The Matthew Cullum property website will provide more details on obtaining finance and strategies for financing a build project.
Another important process is the feasibility study which will ultimately tell you whether a project is feasible and can obtain sufficient profit margin. Based on the results from the preceding analysis and investigation the study can be carried out to assess whether a property development is a realistic opportunity with appraisal of all costs and benefits involved. In establishing the profit residual along with the capital investment needed this will give you an idea of whether or not to embark on a particular property project.
