A lot of people want to get into real estate development. After all, they know the money is pretty damn good, right? But what type of development are you going to be focusing on? Let’s take a quick look at the options. We’ll look at their benefits as well as their complications.
Commercial
Commercial real estate is probably the one that people get wrong most often. It requires you to be extremely knowledgeable about commercial needs. And this isn’t something that everyone has an intrinsic understanding of. If we think about residential real estate, for example, we can see how that might be easier.
After all, many of us have a sense about the sort of homes we want to live in. We can extend that sort of thinking into the residential developments we get involved in. Public developments are often just a matter of making a big space and meeting a bunch of regulations.
But commercial real estate development is more complex. Local business owners and their representatives are going to have to be negotiated with, for a start. There’s also a matter of the design. What kind of commercial endeavours are you going to be housing here? You need to think carefully about what your average business owner is going to need from a property. Blocks of generic offices rarely cut it anymore, not in modern business.
But commercial real estate can bring in an earth-shaking amount of money. After all, you could be dealing with pretty big businesses. (This, of course, depends on the quality of your development!)
Residential
When people think about residential real estate, they usually think about one thing: a house. While that’s where a lot of the big money is, you need to be careful to consider the average modern customer. Fewer and fewer people are buying homes, simply because they can’t afford to. Renting small properties is becoming much more popular.
You need to keep that in mind if you’re looking to get involved in residential real estate. Don’t just buy some land and build a home while leaving enough room for a garden. You could begin a development that’s much more practical and could earn you more income. You might have to start thinking about multi residential developments. These allow for several independent individuals or families. Multi residential architecture such as apartment designs are definitely something you should be considering. Even entire families are moving into these sorts of places because they’re often that much more practical.
Public
Maybe you’re thinking about developing property that is accessible to the public. Not many investors and developers think about this at first. They often go straight for the residential and commercial options. Admittedly, public developments often lean toward the latter. But the difference is that they won’t be privately used. They could be used to hold public events like art shows, music concerts, or others. They can also be used as clubs or restaurants.
These sorts of developments will usually require a lot more collaboration with municipal governments. Local councils may require a cut of the profits that result from such a development. In fact, it’s often they who initiate such projects. Professional developers are then hired to oversee the actual development. In such cases, profits can be very good indeed.