In mid-May, USA Properties Fund broke ground for a 264-apartment development project estimated at $81 million in Lancaster, Antelope Valley. The construction of Terracina is already underway, with the aim to increase affordable housing in Lancaster. According to RENTCafe, Terracina at Lancaster will make housing more affordable by offering rents about 35% less than nearby market rates. Rent for a one-bedroom apartment will range between $1,108 and $1,130, while rent for a four-bedroom apartment will range from $1,715 to $2,058.Once completed in late 2030, the 264-apartment community will feature many amenities, including a sports court, pool, and picnic area.
Real estate development should be top of your list if you’re looking for ways to create wealth. However, careful research and planning are vital while developing real estate property. Below are a few things you should know about property development.
Property development risks
Developing property for residential or commercial use is an excellent way to earn a steady monthly income. However, like any other investment, there are risks involved in property development. These challenges include cost overruns, market volatility, income uncertainty, and government regulations. Property developers must also manage other risks like vendors’ liability, marketing, project financing, and cost management to keep the project going. If you’re new to property development, these risks might seem impossible to mitigate, but they are manageable. All you need to do is learn how property developers manage risks and implement the right approach based on the type of properties you’re developing.
Experts to consider for successful outcomes
Transforming a development project from an idea into a reality can be daunting. The tasks and tools required demand years of experience, knowledge, and resources that are often beyond the developer’s abilities. That’s why it’s crucial to hire a team of construction experts to guide you through each development process. For instance, hiring an experienced consultant is key to creating a feasibility study that will help you choose the best location and develop buildings that meet consumer demand.
You’ll also need a master plumber to install sinks, faucets, drains, and gas lines for cooking purposes. According to Equity Plumbing & Drain Company, professional plumbers will recommend the best options for replacements and upgrades based on your budget. So, whether you’re building from scratch or remodeling your property, plumbing services are a must. Civil engineers, architects, electrical engineers, roofers, and painters are other professionals required for successful property development.
Remember, before you can begin constructing residential or commercial properties, you must obtain the required building permit and win equity investors. Once you have the licenses and funds, you can start building from the ground up or renovate if you’re redeveloping an existing property. To ensure your project runs smoothly, hire a project manager to oversee the process. It’s important to note that the construction phase is considered complete after thorough inspections to ensure your building is safe and meets all the set standards.
Real estate development is a viable way of increasing your income. However, you must follow the right tactics to increase your chances of success. First, you must have a risk management plan in place to mitigate challenges like cost and time overruns, contractor liability, and government regulations. You’ll also need to build a team of experts, obtain permits, secure financing, and market your property.