Dos and Don'ts To Keep In Mind When Developing Raw Land

The market for raw land is growing as the population expands. According to researchers, the estimated number of the world's population by 2025 is 8.025 billion. The increasing population creates a demand for more housing and property development globally. This will likely lead to higher land prices, making raw land a good investment.

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Developing raw land can also be profitable if done correctly. Many investors have already made a significant return on investment after developing their raw land investments into actual projects. However, it is not an easy task to develop raw land as many things need to be considered before starting the development process.

To help you out, here are some tips on what you should do and avoid when developing raw land:

Do Perform a Feasibility Study 

A feasibility study allows you to assess the potential of the land for your desired use and identify any potential problems or obstacles that could impact the success of your project. By investing in a feasibility study, you get to avoid making costly mistakes down the road, like choosing the wrong location or selecting a property that is not suited for your needs.

These are but a few critical components of a feasibility study:

• Identify the purpose of the study to determine what data you need to collect and analyze.
• Carry out a site inspection to understand the land's physical characteristics and potential problems that could impact your project.
• Perform a market analysis to understand the demand for your product or service in the area and identify potential competition.
• Conduct financial research to assess your project's costs and possible return on investment.

With a feasibility study, you can be sure that your raw land development project has a higher chance of success.

Don't Simply Resort to the DIY Approach

Developing raw land is a complex process, and many potential risks are involved. Unless you have the experience and expertise to handle the development process, it's best to leave it to the professionals.

Let's say you intend to turn your raw land into a pay parking space after learning that there is a demand for extra pay parking spaces where your new investment is. You might be able to get away with DIY-ing the development process and simply build a few parking stalls and put up some signage. However, if you don't know how to properly design and construct pay parking facilities, you could end up with a defective product that doesn't generate the revenue you were expecting.

Instead of the DIY approach, hire professionals with the experience and expertise to get the job done right the first time. This will save you time, money, and headaches in the long run.

Do Invest in the Right Tools and Equipment

Suppose you already have experience developing raw land. In that case, you know that the process can't be done without the right tools and equipment. From excavators and bulldozers to dump trucks and tractors, there is a long list of machines and equipment needed to develop raw land.

You don't necessarily need to buy all the necessary tools and equipment, especially if you won't be using them frequently. Only invest in the items and machinery you will be using regularly. For instance, you can consider buying a Bobcat compact excavator to help you with various tasks like excavating, trenching, and demolition.

Instead of purchasing a standard-sized excavator, consider buying a compact one so you can save money while still being able to get the job done. The trick is to purchase from a reliable supplier who can also service your equipment for future maintenance and repairs. This will enable you to keep your machines running smoothly and avoid costly downtime.

As for the tools or equipment you won't need as often, consider renting instead of buying. Renting is more economical and practical as you only need to pay for the time frame in which you'll be using the equipment. This allows you to save money while still accessing the tools and machines you need.

Don't Overlook the Importance of Zoning and Permits

Before you start any development on your raw land, understand the zoning regulations in the area. The last thing you want is to develop your land only to find out later that it doesn't comply with the zoning regulations and you need to make changes. This can be a costly mistake that can easily be avoided by doing your research upfront.

Zoning regulations will dictate how you can develop your land and for what purpose. For example, if you want to build a pay parking space, but the land is zoned for residential use, you would need to re-zone the land for commercial use, which can be a lengthy and costly process.

The best way to avoid any potential problems is to work with a professional planner who can help you understand your project's zoning regulations and requirements. They will also be able to advise you on the best way to move forward with your development plans.

Don't forget that you must also obtain the proper permits before starting any work on your land. The type of permit you need will depend on the nature and scope of your project. Failure to obtain the required permits can result in costly fines, and you may even be required to stop work on your project until you get the necessary permits.

Developing raw land can be rewarding and profitable, but it's not without its challenges. Following the tips above, you can avoid some of the most common mistakes when developing raw land. Just remember to research, hire the right professionals, and invest in the right tools and equipment, and you'll be on your way to a successful development project.