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I’ve been asked a question recently about property developers and what they look for. So I am going to let the viewers in today about developers are looking for.
First of all the majority of developers are quite big developers so they are looking for high lot yields – what I mean by this is properties that are able to be subdivided into a quite a lot of blocks. So you might be looking at a lot that can be split into 100, 200 plus blocks, so there is some longevity in the process.
Most developers will want to do what is called due-diligence on the property. So that is their investigations and research in to the cost of subdivision, also the selling of the blocks – what they can get for the block, amount of blocks sold over a year and how long that is going to take to move their stock because there is what is called holding costs, which are costs that developers incur while they are waiting for the property to hit the market, to be sold, titles to be issues and stuff like that.
A lot of the time developers have either boards or investors to report back to. That has to be taken into consideration as part of their decision making in regard to risk and also regarding finance, which can be a challenge in the current market.
Those are some of the things that developers are looking for, obviously we work with a number of developers. If you would like to talk more developments or you are a developer and looking for some land then please come and talk with us.