Is Property Development a Lucrative Investment

[pugboy]

don’t feel big developers cant buss too
one woodbrook place was a bust for clico
rennaisssince buss for rahael, guillen and woodruff

but yes, home solutions come here and mash the place
esp since they sub their work

[88sins]

Don't nobody have "unlimited funds" bruh. And that includes even governments.
The limits of their ability to leverage may not be public knowledge, or the source of their funding may not be willing to pull the plug yet, but when water more than flour, ties will be severed and markers called

[The_Honourable]

In short:

1. Very lucrative but pitfalls are numerous, wait time from statutory agencies varies and rachifee with contractors is galore.

2. Not easy. It would be "easier" if you already have capital for land development.

3. Not necessarily. Most will dig out your eye once they realize you are inexperienced.

Now the long part, these are the most important things:

1. Is the deed/title for the 5-acre parcel fully under your name? If yes, 1/2 of your problem is over. You might think I am exaggerating but you would not believe how much properties out there have defective and encumbered titles.

2. Apply for a status letter from Town & Country. They will tell you if the parcel is bonafide, have any approvals, and the purpose (agricultural or residential). Sometimes, the neighborhood is physically residential, but T&C have it on their records as agricultural.

Read more here: https://www.developtt.gov.tt/ttacps_app ... elines.pdf

3. When you receive your status letter, I suggest you visit Town & Country on "Public Days" which is usually a Wednesday where you can ask questions to Officers, Planners, etc. Your main question is if the status of your lands can be changed. As in, if the letter states your parcel is Agricultural, you can ask if it can be changed to Residential. Or if your status is Residential, change to Commerical or mixed use (residential and commercial). You will also know if Outline Approval would be given and to what type of development.

4. If you know for certain that the parcel is residential or can be changed to residential, you then go to a licensed surveyor. The parcel would be surveyed and a plan drawn up to show subdivisions according to T&C policy. It's then submitted to T&C for outline approval. Since you already spoke to T&C and know what you would receive approval for, you have less chance of your request being refused. Make sure and get a surveyor who actually goes into T&C and have discussions. Those that don't usually send in plans instead and "hope" it gets outline approval while charging you money. If it's refused, T&C is blamed, money gone and yuh wasting time. Since you take in front by going T&C first and gaining knowledge of your parcel, you will know if the surveyor knows what he/she is doing.

5. Once you get Outline Approvals, it's usually details conditions such as the development of roads, drainage, utilities, reserves, fire hydrant, etc. That's when you get a contractor involved. Some surveyors can help you put out a tender. There are some good small-medium sized contractors out there, but most are trouble.

6. After you are finished, inspections will be done by Regional Corporation and County Ministry of Health (CMOH) where upon approval your plans are stamped. It is then sent back to T&C where you have final approval with a signature from the Director of Surveys.

If your lands were already T&C approved before you inherited it, well done to the previous owner. All you have to do is retrieve the T&C plan to verify if it has full approvals. If yes, congratulations. If no, just reapply for outline approval and continue the process.

Since the parcel or subdivided parcels of your 5 acre is now fully approved, you are in control as fully approved lands are in HIGH demand. You can sell all your parcels making bank, sell some and use the funds to build for example townhouses making more bank in sales or rentals, or use one or more of the parcels as collateral from the bank to build on your other parcels where the proceeds from future unit sales or rents pays off the loan/mortgage.

Of course, when you are building you have to go through the T&C process again for the structure (house, building, development, etc). Once you get a completion certificate from regional corporation for your structure, you set.

If you find this intimidating, you can get an experienced consultant or consultancy company who will do "everything". It will cost you but if they know what they are doing, they are an asset for your property to be a success and a trusted partner in any other properties you decided to invest in.

Well boy, thank you very much. I dont think I can handle all that, I certainly cant afford to either. Developers usually finance through banks or otherwise?

I noticed these past year or so home solutions and even Dreamon building like they have unlimited funds. How,? considering they are generally new to the game.

Some are new to the game while others around for a decade or two. Many start on smaller projects and got big. Others started individually with their own money for years then incorporated a company to start bigger projects. In terms of finance, some use their own money while others use banks or a combination. When it comes to bigger projects, it's usually presales/pre-development/pre-construction price where the buy in for homeowners is a lower price than the future market value when the house or unit is complete. Example a townhouse unit at presale is 1.8M, after the unit is built it's valued at 2.0M so you and others buy units at presale prices where the developer use the funds to complete the project.

All have its pros and cons and many projects have failed and in court because of unpreparedness, shortcuts and greed.

If you can't afford, still go to T&C with your survey plan or cadastral and talk to them on what the area is zoned for. It's free, and you might learn some info about the parcel and the general area that can be a selling point.

[pugboy]

many developers build out in stages, eg one townhouse block at a time and presell as they go along.

banks only finance if they know you and you have the capability to make the money.
many of those big developers who buss still get financing later on.