A successful luxury land development deal can generate millions of dollars for investors. Managing this project is going to take a detail-oriented professional that has had experience with this type of project before. Regular residential areas might not need the luxury approach and might not garner the same ROI as luxury land when developed appropriately. Mismanagement of this project can leave a land development professional blacklisted in a local community. The following are things that you should know about luxury land development.
Picking the Right Location
Picking the wrong location for a luxury neighborhood can be a recipe for disaster. Areas with high crime rates are not desirable to live in on average. These areas also commonly lack the entertainment options that are associated with safer areas. Being able to purchase a piece of land on the water is a great example of something that will draw in buyers after the project is complete. Easy access to the area should also be a consideration as being near an interstate can provide ultimate convenience. List out all of the positive aspects for buyers as well as the development team.
Picking a Reliable Contractor
Picking the best land development contractors in the area is going to be immensely important. Whether you are building luxury homes on the land or penthouse apartments, there are going to be deadlines that need to be hit. Finding an established land development contractor that provides various services cannot be undervalued. The delay of a project by a few months can cost quite a bit of money in lost rental fees or land purchases. You need to remember that everything needs to be of the highest quality in order to sell homes or penthouses/condos. Everything from parking access to the sidewalks can impact the decision of a buyer so leave no detail unmanaged. One detail you want to be on top of is Contracts. When dealing with contractors it’s also worth taking into account the use of a contract management system, to ensure everything is kept up to date, terms are being met and standards are kept. Also use a contract repository by GatekeeperHQ to keep the information safe and easily accessible to refer to.
Keep Environmental Impact in Mind
The average consumer is far more aware of the impact on the environment than ever before. Certain consumers will not invest in a luxury property if wetlands or other nature preserves have been impacted/destroyed. Finding contractors to clear the land that reuses materials and recycles is a great place to start. Developing the land in an environmentally friendly way can also be a great PR move if it is published in local publications. Doing things in an eco-friendly way might be a bit more expensive but it will be worth it once the development is complete.
Project Management Software Needs to be Used
There are very few projects that have as many working parts like that of a luxury land development project. Small details can slip through the cracks which can result in a lower return on investment for the project. The ability to let investors and potential buyers know what part of the project is underway can provide relief. An investor that can easily login or is sent a report weekly on the progress will be far less invasive than an investor with no idea of what is happening. Make sure that the companies that you are working with are involved in the project management as they are an important component impacting the completion of the project.
The truth is that a luxury land development project is not for a person lacking experience developing land. Too much money is tied up into these types of projects to have constant mistakes during the process.