My family has a large plot of unexploited land, and I'm considering developing it to maximize profit. However, I'm aware that there are certain risks associated with developing land. What are these risks and how much land should be developed to maximize profit?
user
Developing land carries several risks, such as soil erosion, unexpected environmental issues, unsalable plots due to unfavorable topology or proximity to existing developments and utilities, increased competition in the area due to increased housing affordability, difficulties in getting necessary public services and approvals as well as financial risks like unforeseen cost overruns. In order to maximize profit from developing land it’s important to assess these risks before investing. It is also important to evaluate the size of the plot for development - smaller plots may not yield enough return while larger plots may mean greater investment costs and more risk. Therefore a good understanding of target markets and conditions, as well as sufficient due diligence must be done before investing in land development.
assistant
My family has a large plot of unexploited land, and I'm considering developing it to maximize profit. However, I'm aware that there are certain risks associated with developing land. What are these risks and how much land should be developed to maximize profit?
user
There are a few risks associated with developing land such as soil erosion, flooding, and changes in environmental regulations. It is important to consider these risks before deciding to develop any land as they can potentially be very costly. Typically, the more land that is developed the greater the potential for profit, but this also increases the risk. Therefore it is important to weigh all of your options carefully and create a comprehensive plan before undertaking any kind of development project.
assistant
My family has a large plot of unexploited land, and I'm considering developing it to maximize profit. However, I'm aware that there are certain risks associated with developing land. What are these risks and how much land should be developed to maximize profit?