ABSTRACT
This chapter explains the rationale of decision-making in development. It identifies the different types of value in property and the nature of profit in property transactions and works. The chapter considers the decision on whether to develop or not and examines finance and taxation in making decisions to development. A major political and social issue in society has been and still is the handling of both realised and unrealised land values. The main decisions in development are whether to develop land or whether to redevelop an existing property. Obtaining planning permission for the development of a property usually, almost invariably, has a beneficial effect on its open market value. For the entrepreneur the assessment of risk may be quantitative, but is often with a qualitative dimension, in the sense that it is hunch-induced or a gut feeling — in other words it is intuitive.
