Real Estate Development – How to Choose a Site With Great Development Potential!

We can’t tell you the number of times we’ve seen inexperienced property developers rush in and buy a development site because it looks like a great opportunity, only to find themselves struggling, and regretting their decision, further down the track.

We believe that it’s essential to perform proper due diligence and a thorough site evaluation before making an irreversible commitment to acquire a site, preferably using a checklist.

When we’re satisfied we’re able to develop a site and we’re happy with our initial ‘back of envelope’ calculations, we don’t immediately acquire the site. Instead, we come up with an initial concept. This is where we do some rough sketch layouts (we may even come up with a number of different options), using the Local Authority Planning Codes and Policies.

In most situations, depending on the local authority planning codes, the area of the proposed building will be based on the land remaining after allowing for required boundary setbacks, car parking and maneuvering and open garden landscaped space.

This, together with the preferred unit size (determined through our initial Marketing Research) will indicate the number of units that can be accommodated on the site. To get the maximum benefit out of a site, a competent and experienced architect should be engaged to create these initial concepts.

As we haven’t gained control of the site yet, we can still back out of the deal. We prefer to quickly prepare schematic drawings to determine the true potential of a particular site. Because if we don’t, we’re just gambling with usually very high stakes.

As soon as the concept drawings are finished, we fine-tune our ‘number crunching’ by undertaking a proper financial feasibility study. The purpose of a feasibility study is to establish whether a project is a viable proposition or not.

If the concept doesn’t pan out, we consider the time and effort we’ve put in to be our “insurance premium”, which has just saved us possibly tens or even hundreds of thousands of dollars, and untold stress, by helping us to avoid a problem site.

We use “Feastudy” property development feasibility software that allows us to work backwards to evaluate what the land is worth to us with development approval – this is called the Residual Land Value. This number is very important in calculating what we would be willing to pay to acquire the property.

We use Worst Case scenarios to do our calculations, which means we are conservative in the values that we input. We include anticipated time scales, all costs including consultants and construction costs, as well as likely end sale values, our minimum profit margin, plus a contingency allowance (depending on circumstances especially site conditions).

It is critical that this feasibility calculation is performed correctly.

If we try to develop a site which is not actually feasible, we are setting ourselves up for stress, disappointment, and possibly even large financial losses.

The feasibility study is also invaluable when putting together a JV or Loan Application Proposal as mortgage lenders or other investors can instantly see whether our project will be successful and the level of risk involved.

A lender will only fund a project which can be demonstrated to be financially feasible – however, if we are funding the development ourselves, we need to be just as certain that the numbers stack up.

So many newbie real estate developers miss out the detailed feasibility step, and the really sad result is that they end up suffering, emotionally and financially, and often give up on real estate development completely because they conclude that it “doesn’t work”.

We know that it does work. But only when the detailed feasibility study says it will work. Anything else is simply guesswork and high-stakes gambling. You may get lucky, but the reality is, you could also end up losing your shirt.

How To Get Great Home Interior Design Ideas

If you like the idea of coming up with your own home Interior design, you are not alone. Lots of folks these days are planning out and then executing their own interior designs. But how do you come up with great home interior design ideas? Here are a few suggestions to get you started.

Probably one of the easiest ways to get home decoration ideas is to simply watch television these days. There are several shows that are dedicated to the subject of completely redesigning an entire house room by room. The biggest problem with watching these television shows is having something in front of you as documentation. So a couple of ideas that may help out is to have a pencil and paper available to take notes as you go, and also to record the program for viewing later on.

Even though you may get some great home interior design ideas from these television shows, ask yourself whether or not they will fit well in your particular home. Just because they look great on television in someone else’s home does not mean that it will fit in well in your home. So try to visualize the whole project from beginning to end in your house. And plan, plan, plan. By taking extra precaution in the planning stages, you can ensure a more problem free application.

However, television is not the only source for home decoration information and ideas on Interior design. There are several great books on the subject that are able to help designers of almost any background and experience level. The advantage of books is that the documentation is already done for you. It usually has a very well thought out plan for implementing any kind of home interior design on its pages. And usually you’ll be able to have more than enough photos and pictures to help get a good mental picture of the process as it goes.

Another way to get excellent ideas for interior design is to look through magazines on the subject. There is no shortage of magazines that are devoted to home decoration and interior design. Believe it or not, even many professional interior designers collect large quantities of magazine articles and pictures and store them in a way that will help them have a larger pool of ideas to draw from in the future. Not being a professional yourself, it may be a good idea to start your own scrapbook of home interior design articles and photos that you can separate according to a specific theme or room type. Sometimes, the best decoration ideas are a combination of things that are brought together from several different sources to form a unique, one-of-a-kind design.

As you become more comfortable with your own level of creativity, you will be able to combine aspects of one design with another more adeptly. However, as you start out it may be best to stick to the overall themes and suggestions given in the magazine for achieving the look that is desired.

If you begin right away to assemble this archive of home interior design ideas, it won’t take long for you to have a really sizable reference guide to help you come up with almost any idea that you could ever need.

So as you can see, gathering information and ideas from several different sources and compiling them all together in an easily researched form can be one of the best ways for you to get great home interior design ideas quickly and easily.

How to Get Started With Home Interior Design

If you want to redecorate your entire home, then learning interior design and decorating might be the thing to do. So, with that in mind, interior design software could be one of your purchases, especially if you don’t want to employ a decorator. There are of course advantages and disadvantages to the whole idea of “Do It Yourself”. First, If you’re not a computer-friendly person then you might find it a bit difficult to pilot the waters of interior design software. Again, there is always the alternative, to get yourself an interior decorator where you will shell out substantially more than you can afford. Which in turn, means that you might have to cut down on some of your decorating needs. If you are anything like me, you would be saying right now – “I don’t think so!”

Now, here you are, you have made the decision to give it a go yourself. Leaving the designers and decorators behind. Congratulations! It needn’t be as difficult as you think and can even be absolute incredible fun. The only time that you’ll truly might get a worry is when you need to do your budget. After that it’s a matter of sliding your way downhill through your home interior design plan. And hopefully with barely any bumps or detours. But, those can be expected, so don’t get discouraged, keep moving forward in your interior design plans.

Now back to the software. If you’re not too well-situated with your artistic abilities and visual image skills you might look to some relief of a well know friend to help you understand the software. However, if you are a die hard and want to learn it yourself, by all means, don’t hesitate. The learning will pay off for you. It doesn’t actually matter either way how you go about it as long as you get you home interior design project off the ground.

After all there’s only so long that you can stand and watch your house fall to pieces around you. Ok, Though that might have been a bit of an exaggeration, if you’re thinking about home interior design or remodeling then now is the time to do it. If you put it off now, there’s no telling when and if there will be a next time.

And one of the very first things you can do for your home interior design project will be to decide precisely what you’re going to do. For example, are you going to go through the entire house one room at a time or are you going to do only one or two rooms right now. This is an important decision, so take your time and make sure it is what you want to do. This decision dictates the how, what and when of then next phases.

After you decide that, then you can move on to the next phase which is provision, what you’re planning to do. And this is where the home interior design software comes in handy. I told you earlier, the learning will pay off, well guess what, here is where it pays off. With this little visual image aid you can imagine what your redecorating plans will do to your rooms and make your life just that much more easier. And in the end that’s really what you want isn’t it, to make your life easier. So, stop putting it off with excuses. Learn the fundamentals of interior design and decorating, get yourself a good piece of interior design software and bring you home back to life.