Real Estate Development – How to Choose a Site With Great Development Potential!

We can’t tell you the number of times we’ve seen inexperienced property developers rush in and buy a development site because it looks like a great opportunity, only to find themselves struggling, and regretting their decision, further down the track.

We believe that it’s essential to perform proper due diligence and a thorough site evaluation before making an irreversible commitment to acquire a site, preferably using a checklist.

When we’re satisfied we’re able to develop a site and we’re happy with our initial ‘back of envelope’ calculations, we don’t immediately acquire the site. Instead, we come up with an initial concept. This is where we do some rough sketch layouts (we may even come up with a number of different options), using the Local Authority Planning Codes and Policies.

In most situations, depending on the local authority planning codes, the area of the proposed building will be based on the land remaining after allowing for required boundary setbacks, car parking and maneuvering and open garden landscaped space.

This, together with the preferred unit size (determined through our initial Marketing Research) will indicate the number of units that can be accommodated on the site. To get the maximum benefit out of a site, a competent and experienced architect should be engaged to create these initial concepts.

As we haven’t gained control of the site yet, we can still back out of the deal. We prefer to quickly prepare schematic drawings to determine the true potential of a particular site. Because if we don’t, we’re just gambling with usually very high stakes.

As soon as the concept drawings are finished, we fine-tune our ‘number crunching’ by undertaking a proper financial feasibility study. The purpose of a feasibility study is to establish whether a project is a viable proposition or not.

If the concept doesn’t pan out, we consider the time and effort we’ve put in to be our “insurance premium”, which has just saved us possibly tens or even hundreds of thousands of dollars, and untold stress, by helping us to avoid a problem site.

We use “Feastudy” property development feasibility software that allows us to work backwards to evaluate what the land is worth to us with development approval – this is called the Residual Land Value. This number is very important in calculating what we would be willing to pay to acquire the property.

We use Worst Case scenarios to do our calculations, which means we are conservative in the values that we input. We include anticipated time scales, all costs including consultants and construction costs, as well as likely end sale values, our minimum profit margin, plus a contingency allowance (depending on circumstances especially site conditions).

It is critical that this feasibility calculation is performed correctly.

If we try to develop a site which is not actually feasible, we are setting ourselves up for stress, disappointment, and possibly even large financial losses.

The feasibility study is also invaluable when putting together a JV or Loan Application Proposal as mortgage lenders or other investors can instantly see whether our project will be successful and the level of risk involved.

A lender will only fund a project which can be demonstrated to be financially feasible – however, if we are funding the development ourselves, we need to be just as certain that the numbers stack up.

So many newbie real estate developers miss out the detailed feasibility step, and the really sad result is that they end up suffering, emotionally and financially, and often give up on real estate development completely because they conclude that it “doesn’t work”.

We know that it does work. But only when the detailed feasibility study says it will work. Anything else is simply guesswork and high-stakes gambling. You may get lucky, but the reality is, you could also end up losing your shirt.

Home Interior Design Idea – Simple Yet Effective Home Design Idea!

The latest trend in home interior design is the use of themes. Theme ideas range from sports to fabulously feminine and contemporary to eclectic. One of the most popular themes is the “Tropical Island” theme.

When using the Tropical Island theme idea, there are many directions you can go. From elegant to fun, you have a wide range of choices. You can use art work, painted murals, wall paper, textured wall paint or any combination of these materials.

Select colors that represent the tropics such as various shades of blue, dark turquoise and deep shades of green. Burlap fabric is a good choice for wall covering. For an inexpensive Tiki look, attach bamboo shades to the wall, than attach a chair rail above the shade using bamboo shafts.

Tropical plants are a must-have for the Tropical Island theme. You can use live or silk plants or sculptures of trees. Some craft and hobby stores have fake palm trees with strands of lights attached to them. Fake palm trees are fun and festive and provide a small amount of additional lighting.

Window treatments should be light and airy. Bamboo shades are a logical choice for this home interior design. Other options include brightly colored sheers or draperies made from bright, sheer fabric or an island print.

A wide range of art work is available to create any style of Tropical Island design. You might want pictures of sugar plantations or pineapple fields. Maybe you prefer oil paintings of cargo ships or fancy yachts. Perhaps your tastes are more suited for seagulls, pelicans, dolphins, turtles or other sea life. Regardless of art preferences, there is an abundance of art work depicting the beauty of the islands.

The Tropical Island home interior design can be used in nearly every room. It makes for an inviting living or family room, as it is bright and cheerful, yet relaxing. It is a calming theme for use in a bedroom and can easily be adapted for children or a nursery. Many children enjoy being surrounded by pictures of sea life and are calmed by the soothing colors.

Bathrooms are a natural setting for the Tropical Island theme. Accessories can easily be located in most retail and department stores. You can find everything from toothbrush holders to wall paper in a variety of island designs. A popular trend in bathroom designs is the use of glass bowl sinks. These are perfect for the Tropical Island theme and add exquisite beauty to the room.

Kitchens lend well to the Tropical Island theme. Bamboo kitchen tables and bar stools are quite popular. Another option is to use a picnic table or outdoor table with an umbrella. You could even go so far as to use a Tiki hut design umbrella to bring in the tropical island feeling in your dining room.

Laundry rooms and storage areas are usually boring areas within the home. Add a splash of tropical color or use a tropical island print wall paper border to breathe some life into a dull and boring space. Use wicker baskets painted in bright colors such as turquoise, orange or yellow, or paint shelves or walls in tropical shades.

The Tropical Island theme works well in the home office setting. It is inviting and friendly to guests and provides an uplifting environment in which to work. Use a variety of lush tropical plants and an aquarium or water fountain. Paint your office furniture white and add a tropical design for a fun and festive look.

Grab some home interior design magazines and catalogs and let your imagination go wild. Cut out photos of items you like and tape them to a piece of paper or foam board. Create a floor plan to help you determine what items you have room for, then go shopping.

Look for deals at your local thrift shop or visit yard or estate sales. You might be surprised at the great bargains available and you’ll probably find several unique accessories. Most importantly have fun and get creative with this home interior design idea and soon your tropical oasis will await you!

Copyright Shrinivas Vaidya

New Home Interior Design – Plan Ahead

By failing to plan properly well ahead of time for your new home interior design, you could end up feeling too overwhelmed with other work to actually plan out how you want your new home to look. In addition, by the time all your belongings are moved into the new home, planning for the new home interior design will be close to impossible with all the clutter lying about.

Getting Started

When planning for your new home interior design, begin first by spending time in your new home and taking a good look around. Keep in mind that it is much easier to plan for a new home interior design when the house is still empty and bare. Visit your new house at least twice before you begin to lay out plans for your interior design.

Make sure that you visit at least once in the morning to see how the light plays around the rooms during the early morning. Then visit again in the afternoon to see how the rooms look and feel in the afternoon light. Remember that your new home interior design will work better if it is designed to harmonize with the light to achieve that warm, sunny and homey feeling.

When visiting your new home, take along a sketch pad and pencil with you. Never mind if you cannot paint or draw. What is really important here is that you note down all of the important parts of the house and then take the time to plan out what you will do with it. For instance, you will want to get the dimension and shape of the living room.

You will be taking measurements for drapes and window coverings. And if you intend to buy new furniture, you need to select pieces that will not look overly large for the space nor make the area look crowded. By jotting down the exact size and shape of the room and home interior design, you will be able to determine the types of furniture and fixtures needed in order to make that room look like your own, containing your own special touch.