Property Development Project 

Background research

When you are looking to buy a plot of land I recommend you need to look around the area and assess what type of property is already there.

Then be aware of ‘a typical’ person living in the area. Are they buying or renting property.

This gives you an overall picture of the profile of existing properties and buyers. It will help ensure your development project fits the profile for that area.

This area I recognised had older style terraced houses along with newer developments which were apartment flats. The local need was to develop accommodation for people in the rental market. 

Watch the journey 

An overview of the project.  If you have not signed up for my Shaz Nawaz YouTube channel now might be a good time.  It is full of information which I am confident you will find interesting. 

The land

The land to be developed had been fenced off for many years. After purchasing the land, it was in fact nearly three years before work commenced on the site.   For the records it took sixteen months to obtain planning permission.

Tip: Don’t get carried away when going to an auction!

This land was being sold at auction. Unfortunately, I was unable to attend. However, with my joint venture partner we agreed what we would pay. It was up for sale at £97K and we agreed to pay the full asking price if required.

So, when I received the call later that day to say we had secured the purchase I was delighted. Until, I was informed he had paid £117K. Apparently he got carried away thus spending £20K over the asking price!

The finances had to be re-calculated to reflect this impact on the profits.

Only two semi’s – really!

 Initially I was advised I could only build two semi-detached houses on the land. However, working with an architect it was configured so that the plot could be developed into two 2-bedroom houses and three 2-bedroom flats. Quite a difference and of course, increases the return on investment. In my experience having a good team around you is important. In this case my architect was invaluable.

I thought it never going to be finished!

Started this project with a completion date of 2 years including obtaining planning approval. In the end it was nearly three years. There were other reasons for the delay one was an issue with the drainage. How often in developments challenges come along which you can never envisage? You just have to work with them and resolve the issue.

Car park arrangements

As part of the re-configuration process the reason for further delays on obtaining planning permission was down to the number of properties being built and car parking arrangements.

I had to ensure in the development there was ratio of parking for the number of properties. The development is on a busy road with currently a lot of on road parking. Planning Department did not want me adding to the problem.

Looking at the pictures you may think there is a lot of ‘lost’ space in the development and yes I agree. However, it secured planning permission and has made it more attractive for selling than allowed for in the budget. So, a ‘win-win’ situation.

For sale

Finally, the ‘For Sale’ sign went up! After three years it was a great feeling to finally have closure and look reap the return on this project.

But! Due to COVID-19, which caused further delays, buyers are looking to benefit from this and buy up properties at a reduced price. The offer I had was not up to the asking price set in the budget.

The quality of the workmanship in the properties is to a high standard, the outside area is neat and tidy. I decided not to compromise this on the sale price.

Waiting for the right price has paid dividends and all the properties are rented out and the price I wanted.