Property Development & Construction

Learn more about property development, building and construction to improve your chances of success in this exciting but often complex area of property investment.

Many successful property investors become involved with property development and construction projects as they gain experience and their property investment activities become more sophisticated. Such activities can range from simple remodelling and the refurbishment of existing buildings, to highly complex multi-million pound new-build construction projects. Property development projects can be demanding at the best of times and bring with them their own unique challenges, risks and rewards. It is therefore essential that the prudent property developer is familiar with the processes involved, the rules and regulations, best practice procedures, opportunities and pitfalls so as to better manage their risk and improve their chances of achieving success.

Investment Property Partners has brought together a series of helpful guides, articles and other resources written specifically for property investors and developers exploring opportunities involving construction and property development. Learn more about issues affecting property development, remodelling and refurbishment, building, construction and more.

More Property Development & Construction Resources…

Gross development value

Gross Development Value (GDV) – Property Developers Guide to Financial Appraisals

Gross development value, or GDV as it is commonly known in property circles, is an important valuation metric that all investors and property developers need to be familiar with when building their project and financial appraisals. The gross development value of a property investment project can be calculated to give a near accurate figure of what that property or real estate development project may be worth on the open market once all development works have been completed.

Gross development value is an essential tool for any real estate investor or property developer as it forms a key component in the development appraisal process.

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Planning permission, property developers guide to planning applications

Planning Permission – Property Developers Guide to Planning Applications

If you are an experienced investor or property developer then you’ll be all too familiar with the processes involved in getting planning permission and the rules and regulations set-out in the Town and Country Planning Act 1990. Obtaining planning permission or planning consent as it is sometimes called is required if you want to build on land, make substantial changes to a properties structure, appearance or the use to which that property it is put.

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Party walls

Party Walls & The Party Wall Act 1996 – Guide for Property Owners

Many property owners, property developers and investors and have never heard of party walls or the Party Wall Act of 1996. However, if you fall in to this category and you decide to carry out works to a wall that you share with a neighbour it is more than likely that you’ll need to get up to speed with your rights and responsibilities… and quickly!

The fact is that if you share a wall with an adjacent property you have a legal responsibility that comes from the Party Wall etc Act 1996, particularly if you are planning to carry out certain building works, alterations or excavations to that shared party wall.

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Property development finance guide

Property Development Finance – Guide to Funding Development Projects

Funding a residential or commercial property development project with the right sort of property development finance is important as it can impact significantly on the availability of cash to support the initial investment, cash flow throughout the construction phase and ultimately the profitability of the development project itself.

Many aspiring investors dream of becoming successful property developers – taking their own development project and design ideas from the drawing board and making them a reality, and more importantly generating lots of profit in the process.

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Buying off plan property

Buying Off-Plan Property & New-Build Developments

So here you are, thinking of investing in property but undecided as to what part of the property investment sector to tackle. The options are numerous and include commercial property, buy to let, student accommodation, development land and even off-plan property developments. To help you make up your mind Investment Property Partners have put together some valuable information focussed on buying off-plan property and new-build development opportunities which makes for essential reading before you take the plunge in to the world of property investment.

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Residual method of valuation

Residual Method of Valuation for Land, Property & Development Appraisals

In property development circles the residual method of valuation is an essential valuation tool for any aspiring developer as it helps to quickly identify the value of a development site, land or existing buildings that have the potential to be developed or redeveloped.

The words “property development” and “development appraisal” should go hand in hand. This is because without a carefully constructed budget or detailed development appraisal in place, the risks associated with a development opportunity should be considered to be unmanaged and consequently the chances of achieving a successful project outcome are significantly reduced.

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Section 106 agreements and planning obligation for property developers

Section 106 Agreements & Planning Obligation – Guide for Property Developers

If you are an experienced property developer then you’ll be all too familiar with section 106 agreements, also known in property circles as planning obligation. If however, these are unfamiliar terms and you are currently considering commercial property development or redevelopment opportunities that fall under the Town and Country Planning Act 1990 then you’ll need to get up-to speed… and quickly.

Section 106 agreements or planning obligations form a specific part of the Town and Country Planning Act 1990 and although it isn’t the largest section of the Act, it does play an important role when it comes to planning law.

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Land investment and building plots

Land Investment, Building Plots & Investing in Land for Profit

Over the past few years both the UK residential and commercial property investment markets have fluctuated significantly, at times struggling to maintain capital values and investment returns. You might therefore be led to believe that now is also a poor time to acquire land investment opportunities and building plots for development… but not a bit of it.

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Property yield, calculating yields and return on investment

Property Yield – Calculating Property Yields & Return on Investment (ROI)

For property investors the intelligent analysis of the financials behind their investment property acquisitions are crucial to their success. Investors need to be focussed on the return on investment or ROI their potential property purchase will deliver, and this is where property yield comes in to play.

To be a successful property investor you need a number of attributes… amongst other things, you need to know your market, understand what adds real value to the property buying and selling process and have tenacity and perseverance.

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Commercial property valuation using the profits method

Commercial Property Valuation Using the Profits Method

The profits method of property valuation is typically applied to commercial property valuations where the major value component is driven by the profitability of the businesses that occupy the buildings and not simply the land or buildings themselves. Situations where the profits method of valuation would be appropriate include hotels, guest houses, pubs and cinemas.

Despite the financial “facts and figures” practicality of the profits method however, one of the most popular techniques used to value commercial property is still the comparable method.

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