Whether you’re in the market to purchase a townhouse or are curious about the workings behind developing this structure, understanding the stages surrounding the process is crucial. Doing so will help you make informed market decisions. This is irrespective of whether you’re on the buying or selling end.
From the pre-development stage to the construction stage and everything in between, we delve into the various phases of a townhouse development, giving insight into each. Read on to learn more.
Pre-Development
As the name suggests, this stage involves creating a plan for your townhouse. This is when a townhouse developer will begin to design a development project. This plan comprises market analysis, feasibility studies, and choosing a site.
What is the purpose of the pre-development stage? To determine value, this plan also assists in pinpointing both opportunities and risks. It also assists in establishing a realistic timeline.
This phase of the process will also determine a budget. All of these details are down to market analysis. This helps the developer to learn more about similar projects, considering the development’s location and size. There is little point in investing in a project when there is no demand. Market research helps you to determine this demand.
Another part of this phase to consider? Site selection. Sourcing the right location is crucial to the development of your townhouse project. Aside from being a sales tool, in the construction stages, locations that boast good access to utilities, transportation, and the required infrastructure ensure a smoother build. Not being able to have material delivered or choosing a location challenging for workers to maneuver equipment around can mean work takes longer than necessary.
From the buyer’s perspective, townhouses that embrace the urban village lifestyle, offering walkable environments and other amenities, are amongst the most sought-after.
Landscaping
Once you have sourced a location and purchased the land for your development, clear the land of trees or debris before beginning the construction phase. The next phase involves leveling the land off. The final stage? Landscaping. Through planting trees, laying grass, and putting any shrubs in place. It’s important to hash out a plan with future growth in mind when landscaping.
Construction
This is perhaps one of the most crucial stages of the development project. Why? This is when the buildings come to fruition. Provided phases have been completed accurately, this stage will run smoothly, ensuring all timelines are met. Delays are not only time-stealing; they cost money!
To ensure a successful construction stage, use materials and tools that meet the necessary safety standards. At this stage, you should always keep your eyes on your budget. This is the point in the process where you will likely overspend.
Post-Construction Stage
This stage isn’t officially complete until all final touches are in place and all workers have left the site, but the work doesn’t end there. Post-construction is necessary before homeowners can move into the property. This comprises a full property inspection and will pinpoint any unfinished areas. This could include hiring a professional cleaning company to clean the property, ensuring it is dust and debris-free, and adding handles to doors or mirrors to walls. Once all tweaks are complete, your townhouse is ready to move into.
You may also wish to invest in the services of an interior designer to style the property at the stage. If the first of many, this development will likely become your show home. Many first-time buyers or those moving from overseas will buy properties fully furnished.
Final Stage
The final stage involves the developer signing the new development to a management company, homeowners association, or homeowner. This is when responsibilities shift. Those overseeing the townhouse or townhouses will be responsible for collecting or paying the rent or the mortgage, maintaining common areas, and enforcing any rules or regulations.
Some townhouses will be purchased outright by an individual. Some will be purchased by a property management agency to rent or turn into a specific accommodation style, such as assisted or student accommodation. Both are popular options and relate to 2022’s one-year moving average, which showed an increase of 13% in the market share of new townhouses for single-family starts.
The Bottom Line
Whether you’re a buyer or developer, learning more about the above five steps will assist you in ensuring a smooth purchasing or selling journey.
Although these steps take time to complete, never overlook them. Following the procedures will mean budgets are met, safety checks are completed, timelines are adhered to, and sales are generated.
The bottom line? Always do your market research, and the rest will follow from there. This goes both ways and applies to buyers and developers. It involves choosing the correct tools, site, and construction processes.
