In Part 1 we examined the performance of land values, identified the level of profit that might be achieved by investing in development land and looked at various ways of sourcing suitable plots, writes Tony Booth.

Having found what might be considered a site worthy of investment, a feasibility study now needs conducting to assess its credibility as development land.

Ground Conditions

Appearances can be deceptive. The plot above ground may be level, clean, free from flooding and seem perfectly suited for building on; but investors must consider what lies beneath.

If the soil is contaminated, sandy, uncompacted or contains toxic substances, it may prohibit development entirely or prove expensive to prepare the site for construction.