When working on your property or looking to develop land that has fallen into disrepair, it might all seem like a simple job. An easy process to realise unlocked value and potential from a property that is not in the best state, but it is not always as easy as it appears. So often the promise of a good return on investment that is on the surface, masks many hidden pitfalls and obstacles along the way. So, if you are thinking about investing your retirement or making your fortune by developing land, here are a few potential roadblocks and hazards that you might want to consider before going all in.
Many a simple job is complicate by the presence of hazardous materials on the site. We are not for a minute suggesting that you are going to be developing land on the site of an old nuclear reactor, but it is important to realise that what was once considered safe and normal is not necessarily so anymore. A great example here is asbestos, a substance that was once used widely in construction, but which has latterly been recognized as horribly dangerous. Thus, if you end up with having to do asbestos clearance on your site, it could complicate your timelines. Whatever you do, if you discover the presence of this highly dangerous substance, don’t try to remove t yourself; call an expert.
Often people look to put condominiums or town houses on a piece of land that they have bought on the cheap. This can be a great plan, but it can also become difficult if the land is not correctly zoned. While it may be zoned for residential use, there are different categories and high density is very different to low density housing and your plan for multiple units could be thwarted if you have not checked the finer points of the council regulations first.
This is less of an issue if you are redeveloping a property. The old fixer-upper scenario. But if you are looking to put structures on a piece of land for the first time there are often environmental impact assessments that have to happen first. There may also be an opportunity for neighbours and other locally invested people to object to your development and to put obstacles in the way. These are all things to consider. Environmental impact looks at all manner of angles, from pollution to endangered species – and we are talking plants, tiny insects and critters that can be the block between getting the go-ahead or not. You might be very surprised at what it is that gets your project blocked.
Do a bit of research before you decide to develop a land. Make sur that there is demand for whatever it is that you are looking to create and that you don’t overcapitalise your investment. It is important that your complex or fixed up residential makes sense in the area that you have built it and that you will be able to sell it quickly and easily. The last thing that you want is to be sitting with unsaleable assets.