i find it hard to believe but i might reach FI soon. but there’s something i don’t understand.

context: in my area, which is probably 5000km+ away from your area, land owners (like me) partner up with a developer. developer gets “free” land. land owners get 40 to 60% of the final product (apartment building).

my neighborhood isn’t the only option for developers in the city. there are 10 other alternatives. and my parcel isn’t the only option. there are 150 other parcels within the same neighborhood.

so in total there are rooughly 1500 parcels in the city developers can build on. that’s about 1 million new residents and $15bn in project cost.

soooo why would a developer build on my parcel before others, considering all that? there are even tons of empty parcels in areas that were developed decades ago!

what advantage do i offer to developers, compared to my neighboring parcel? nothing.

so i feel like nothing’s gonna happen and my FI dream is just a dream or it is 30 years away, not 5.

other context:

  • city population increased around 1 million due in 2023 due to a natural disaster nearby. idk if these people are here temporarily or not. according to how bad traffic is, most of them are still here. so there’s that.
  • city’s gdp is $120bn.
  • cost of development is $500/m2 (optimistic)

any real estate developers here? any thoughts?

  • HobbitFoot @thelemmy.club
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    9 hours ago

    Real estate developers aren’t going to be able help you with the lack of information, but there are things you can do to choose a decent site to develop.

    • Is your site near transportation?
    • Is your site easy to build on with easy connections to utilities?
    • What restrictions does your land have to development?

    If you’re planning on a 30 year investment, I’d look to see if your region has a long term development plan. If so, buy land near a planned highway or commuter rail. If farm land is not protected, buy farms and offer to charge cheap rent to the current tenants. If a road is built, look into seeing how you can get buses to your site. If rail is built, try to be close to the station.

  • ultranaut@lemmy.world
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    9 hours ago

    There’s a variety of steps necessary before building begins. Things like getting utilities run to the property, getting permits, etc. If you’re the property owner who has those things ready to go a developer is likely going to choose you over others who still need that prep work done. You can also probably just agree to a smaller cut of the final product. If you’re willing to give up some value and make it more profitable for the developer they will prefer you over someone they will make less money from.

  • Illecors@lemmy.cafe
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    9 hours ago

    Not a developer.

    To boost your post I’d say the rest of environment. Road access, utility access, maybe some nature - pond, wood, etc.