Real Estate Development in Every

Real Estate Development

In every real estate development project regardless of the location the government is a necessary partner. The following is a description of a project that is being built in a prosperous close in a suburban village near a large population center. Tell me in outline form: 1. The various government requirements that the developer will encounter and 2. What must the developer do to satisfy those requirements?

The various government requirements for the developer will depend upon: the city and state that the properties are located. This is because each community; will have different regulations that will apply to: the activities of the developer and what they are allowed to do under the law. The below outline will detail some of the challenges the developer will encounter and what must steps must be taken to satisfy these requirements. (Kemp, 2003, pp. 89 -- 103)

Requirements the Developer will Encounter

Urban renewal regulations -- These require that certain historical aspects of the community must be in place at all times (such as: the maintaining a certain width and style of the street).

The disposal of hazardous material -- This means that the company will have to account for how the will remove materials that were used in some of the old building such as: asbestos.

Zoning -- Since residential homes are being demolished and retail space is going to be developed, means that there could be different zoning issues that will have to be addressed. (Kemp, 2003, pp. 89 -- 103)

Satisfying these Different Requirements

Urban renewal regulations -- To satisfy these different regulations all of the precise specifications must be addressed. This will take place during the planning and construction phases.

Disposal of hazardous material - The disposal of hazardous material will require making certain that protective suits are used. At the same time, all waste must be sent to locations that can safely dispose of these substances.

Zoning -- This will require the developer obtaining the proper approval from: the local government (before beginning any kind of construction). (Kemp, 2003, pp. 89 -- 103)

How does the political world impact development? How do developers and development impact politicians?

The way that politics is having an impact upon development is based upon: the kinds of laws that are enacted in a particular region. This can help encourage developers to engage in various activities. The reason why is because, they are receiving a number of different advantages to include: tax breaks and grants. At the same time, the more restrictive regulations will have an impact upon development, as they will make it more difficult to work on various projects. The way that this would impact politicians is through: the increased tax revenues (from a higher mill levy rate), it improves the standard of living in the community and it can help to stimulate economic growth (for those regions that are encouraging development). At the same time, those policies that are very restrictive towards developers will result in: the loss of jobs to the community, a decline in the standard of living and a rise in the number of unsold / abandoned properties.

Outline the major steps involved in a real estate development project. Then identify 3 of biggest challenges that you see in any real estate development project.

The major steps that are involved in any real estate project are:

Planning

Land Preparation

Construction

Market Distribution

Property Management

Three of the biggest challenges with any kind of real estate project include: obtaining the proper permits, following the various environmental regulations and cost overruns for the project. (McKenzie, 2010, pp. 396- 404)