In the real estate world, an age-old saying emphasises that the three most important things are "location, location, location". While it’s still relevant, in today's fast-developing world, we're shifting the focus towards 'potential, potential, potential'.
Investing in properties with development potential can offer substantial returns, but finding these hidden gems requires a bit of know-how. In this article, we will explain how to identify properties with high potential in the Swedish market.
Understanding Property Development
Before starting your property prospecting journey, it's crucial to understand what property development means. Typically, it involves purchasing a property and making improvements to increase its value, either through flipping it, constructing new buildings or completely changing its use, turning offices into apartments for example.
The 'potential' in property development refers to the untapped value that can be accessed through these methods, whether it's underused land in an upcoming neighbourhood or a large plot that can be subdivided into smaller lots with more efficient use of the land.
Let's walk you through our simple, tailored approach at Combify:
1. First Meeting - Understanding Your Investment Criteria
Our process begins with an in-depth meeting where we list your investment goals, preferences, and search criteria. This understanding allows us to customise our search and find properties that not only possess significant development potential but also perfectly align with your business investment strategy.
2. Reviewing Municipality Master Plans
After understanding your investment criteria, we leverage our extensive database to review the Master Plans of Swedish municipalities that align with your business goals. By analysing these strategic documents, we identify emerging hotspots for residential, commercial, or industrial development. This enables us to predict where property values are likely to increase, guiding us to spotlight promising investments that resonate with your vision.
3. Evaluating Ongoing Developments and Permits
In the next step, we examine ongoing developments and recently issued building permits within the target area of interest. This gives us valuable insights into local development trends and helps us understand the types of projects local authorities are approving, along with their timelines. Knowing the future direction of the neighbourhood ensures that we only consider properties that align with these trends and your development plans.
4. Understanding Regulation and Zoning Laws
Once we know what's going on in the area, we dive into the legal side of things. We check out the rules and laws about what can be built in each area. This helps us understand the potential and limits of each property, keeping you away from any properties that might not fit your business objectives.
5. Detailed Location Assessment
After we've found some promising properties, we focus on the property's proximities. We consider how close it is to amenities like shops, transport links, schools, and other desirable features. We also keep an eye out for properties near green spaces, bodies of water, and community centres, which are increasingly popular for their contribution to work-life balance and community living.
6. Comprehensive Property Analysis
After examining the location, we take a closer look at the property itself. We assess the current state of the property and how well it matches your goals. We also investigate the ownership history, including the purchase price, and estimate how long any development or renovations might take. This detailed analysis enables you to make informed decisions about whether each property aligns with your plans.
7. Presenting Your Potential Property Portfolio
All our work leads to this - a tailored selection of potential properties that align with your needs, goals, and areas of interest. This carefully assembled portfolio provides all the necessary information you need to make informed decisions about your next steps.
Finally, at Combify, we simplify your search for properties with development potential. We start by understanding your unique needs, then analyse master plans, ongoing developments, zoning laws, and location proximities. By handling all the heavy lifting, we allow you to focus on strategic decisions aligned with your goals. With a tailored portfolio of potential properties delivered to you, your investment journey is guided by our data and expertise, paving a clear path to property investment success.
Ready to streamline your property search? Book a meeting with us today and let's explore how Combify can drive your real estate investment journey forward.