Subdividing a land to convert into a residential village

[Alexandoy]

There is a big estate inside our village which was recently sold to a developer. The plan is to convert the land into a townhouse compound. The developer is a popular one so we are expecting the project to start soon. I had talked to the previous owner and asked why they sold the land instead of subdividing it. Selling the lots can gain them a bigger profit. The problem in subdividing the land is the expense. No one in the family has the funds to spend for the geodetic engineer to measure the land. There's also the architect that is needed to do the design of the residential subdivision. It is a big expense to install the drainage system There is also the permits for all those work, which I know is quite expensive. There were more procedures involved like the right of way because the land is inside our village which means they need an access road.

All right, now I understand why some land owners decide to just sell the big land to a developer instead of developing the land by themselves. Selling the land spares the owner of the stress they will get from the process of subdividing the land.

 

[arunima25]

Recently in last one decade, this township culture has mushroomed in our city. And it's a profitable one for both the developers as well as the people who buy their properties there. It does take car of so many things while developing such projects and so buyers are happy. Almost everything needed for a convenient and comfortable living is available at your doorstep.
You are right that developing a land into a township is not an easy task. So, land owners opt for selling it to developers and builders. Also those with a established brand and market attract more buyers.

 

[Caramelle]

True, selling the land as is could be a better option for landowners who do not have the capital and know-how about the business. If they don't have the funds to pay for the survey and house plan, how are they going to pay for the townhouse construction? Before they can start developing or constructing, they need to register as a business and obtain permits and licenses from different government offices. Land development companies have the expertise and resources to complete such huge projects. They have more experience in the costing and pricing of real estate inventories. They employ professionals to ensure the quality of their housing projects. That being said, real estate developers can use financial leverage to start and complete construction projects. It's not uncommon for them to borrow funds from banks to fund the development and construction. Given their lack of knowledge and expertise in land development, the landowners' decision to sell the land to the experts is a more profitable option with fewer complications.​

 

[Deleted member 28127]

Because a personal person is accomplishing 1 sale per year or one purchase per year however the agency is accomplishing over 1000 sales per year then they will have a great discount and margin this is a difference.

 

[arunima25]

If the land owners are rich ( have cash flow other than the land) and they have an interest and passion for the business, they can go ahead and invest into the business of ths land developers. Here, there is a trusted brand. They had their first project on their own piece of inherited land. They invested a lot to develop it and marketed well for it. It was an impressive one. And two decades down the lane, they are a brand. They have bought many more lands and developed it into townships and other commercial places.

 

[Wiscash]

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