Being a property developer means buying a property or a plot of land and then developing it through renovation or construction to make a profit on your investment.
If you’re considering investing your money into property, then it is essential to consider all the pros and cons before you begin…
- One of the most appealing things about property development is that anyone can do it! You don’t need a qualification, but a creative flair and great planning skills are an advantage.
- You can make your own mark on a property and enjoy seeing your plans develop from start to finish.
- Buying a property at the right price to develop can be a valuable investment, often resulting in a quick return if you can get it right.
- If you can do any of the work yourself, you will greatly reduce development costs.
- Buying at auction can sometimes result in a bargain property. It can also be quite an exciting experience, even as a spectator. However, try not to wave at your mates across the room, as you may end up buying something you do not want or can’t afford!
- If you get it right the financial rewards can be substantial, particularly if you are able to build a portfolio of successfully renovated properties and then move on to new build sites.
- Property development can be a lengthy process, especially if you need planning permission for a new build or to extend. Take into consideration that the market may have fallen by the time you are ready to market and sell the completed project.
- If you don’t have the time to manage the development yourself you may have to find a professional to do this for you, which will mean an extra expense.
- You will need to be very careful with your budget to ensure you profit overall.
- Be prepared for unexpected costs along the way and ensure you keep aside additional funds to help cover these extra surprises!
- Also bear in mind that unless you have cash to purchase the property outright, you will need acquisition and development funding that you will have to repay on the completion and sale of your project.
- There is always a risk with any property that you could end up making a loss. However, with careful planning and expert advice you can prepare yourself for any bumps along the way.
- Remember it will always cost more and take longer than you think. Factor that in and you will succeed.
- For expert help and advice in finding your development projects, designing and getting planning then selling it on, please contact us.
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This post was written by Innermedia Ltd