After getting a bit carried away with the last post, I had to get a bit off my shoulders so I used my non-existent following (for now anyway) to hear me out haha.
SO…. (take 2)
You find land, you want land…you want to buy land.
You manage to find your new project or even your first project.
You are excited, you can’t contain yourself. You feel like you are on top of the world and the world is your oyster. Align yourself with a great transferring attorney that can oversee your needs and wants relating to contracts. You receive the Offer to Purchase (OTP). Before signing anything, take it to your attorney to scan through it. Look for anything that can cause issues for you. Your general OTP will include either a deposit or you have to have a pre-approved bond or have guarantees in place. This is all part of the fun guys and an amazing experience.
But bear in mind, you have to do your homework first. You have to realize the viability of it all, the land is the easy part but building on it is another level. Its very important to know 2 things before you consider buying your land, What do you want to build? and What you want to do with it? If you are a long term investor, then this process would take a lot longer but if you are small time developer, you would want to get in and out and move on to your next project. You have to realize that everything costs money but its important that you get through all the planning quickly to avoid losing your land. Advice is free so don’t be afraid to ask as many questions as possible.
- What do you want to build – Find out the size of your land. In most areas around South Africa, you are bound to building on 50% of your property. So you can judge the size of the house. Do a bit of market researching and get a few quotes to build the size house you are going for. Take pictures of the houses in the area, this is free. Buy a few magazines to look for new ideas and design tips. Once you have this in place, its time to sit with an architect and get your design together. This is a costly situation if you don’t know what you want to build. This takes you in to the next thing to consider.
- What do you want to do with it – The world is your oyster when designing a house but its very easy to over capitalize very quickly. Look at what the houses are selling for in the area. Look at what it will cost you to build. Is it to rent out or is it to sell? Its very easy to want everything YOU want in the project but understand it might not necessarily be what somebody else wants. Be clever with your design. Be clever with your build. If you have a smaller plot, look at trying to maximize the project and build a double story. This only works in certain areas, other areas will be a situation where you can over capitalize. Building a house too small is under capitalizing as the house will more than likely stand for a while before being sold.
The delays will start once you have purchased your land. You have to be in a position to understand that. Understand that it will cost you the longer the delay. But try and work with a reputable architect to design what you have planned. In the meantime while the architect does his thing, you have to start getting all the documents in place for council submissions. Only once the plans have been drawn and council approves it can you follow with other submissions – namely water and NHBRC. You can not under any circumstance throw a foundation without having that NHBRC certificate. Make sure your builder is on top of this as he would be the one registering for the NHBRC. He will take full responsibility for the build. They are however clamping down on this as they are wanting the developer to be held responsible for the NHBRC. Keep that in mind going forward. It is quite the process though but that’s another story for another day.
These above things are the all part of the fun. Try not let it stress you out. Be wise. Be careful and meticulous. Plan ahead. Do your research.
The journey is a fairly quick one when you have everything in place. The first one is the bug that bites. It makes you want to do more and more and more. Just know where you want to go with this guys, know where your end goal is at. Set your goals in terms of developing. It will become easier and easier and quicker and quicker. I personally believe its more fun the further down the road you go. The bigger the projects, the more than can go wrong. Its amazing. The experience can humble anybody. Things never go to plan. Be open with that. Be open with the fact that we live in a country where service is not the be all and end all. Be open to the fact that people are going to try and take you for a ride. Be open to the fact that people will try and get you down when you are inexperienced. Keep learning and keep pushing. The light will always be at the end of the tunnel when you stay on the right track.
Believe in yourself followers.
You can do this!