So, you want to develop land? It’s a dream shared by almost all at some point in their life and can be extremely exciting and rewarding. Sometimes the site finds you, and other times the project comes first. Either way, the success of your land development project depends on the site you choose.
Choosing a profitable site is a skill that takes time and experience to develop. These are the fundamentals that you need to be aware of when starting out.
Does the site have the right zoning?
Even if a site appears to be in a perfect location, zoning will determine whether it can be developed for your purposes. Zoning ordinances change from city and county but common zones used by local governments fall under four types: residential, commercial, industrial, and combination. Your development has to comply with the zoning regulations otherwise, you could fall foul of fines and potential lawsuits.
Understanding zoning is the first step in understanding whether your project is feasible or not.
Is local infrastructure substantial enough?
Depending on the type of project, a study of the local infrastructure will make the site more or less appealing to your target market. This may mean schools, public transport, and connections to other amenities, or other local businesses if you’re planning on building commercial properties.
Ensure you pay close attention to these aspects when you visit the site and understand the level of importance it could have to your final buyers or tenants.
What are the risks?
Without having a crystal ball, you need to look into the future and identify potential risks, especially of flooding and fires and other natural and environmental hazards.
High-risk areas can also be those where costs to build are higher, or red tape is laborious and take a long time to resolve, both of which can significantly eat into your profits.
At a local level, also check for physical obstructions or hindrances that could throw a spanner in the works once construction is underway in terms of compliance issues, and negative impact on your budget or timeline.
Can I get trusted advice?
Yes. Of course. There are highly experienced professionals who can help you assess the potential of your project and advise on whether your site and your project make a profitable fit. APX West are specialists in land development projects for clients looking to maximize their investment and also offer consulting services for individuals early in the land development process in need of expert advice to confidently take the next step.
Am I ready to commit?
You may be tempted to get underway as quickly as possible, but the right research and preparation are crucial; bad planning can burn big holes in your budget. Maintain momentum without rushing, be thorough, cover all bases and get the right advice to maximize the success of the project and your investment.
