Property development is one of those jobs that can make you incredibly rich. With the right contacts, a grasp on a healthy market and a solid reputation, you can turn it into something that could make you millions assuming you have the drive to succeed. However, getting your foot in the door of the property market is difficult, and you’re going to need a lot of money to start. To give you a hand, here are some essential tips that will help you get a big break in the world of property development.
Choosing your business plan
As with any sort of investment, you need to develop a solid business strategy if you want to succeed. It doesn’t matter if you are working as a part-time property developer in your spare hours or if you want to turn it into a full-time job, you need to have a plan. Set realistic goals, such as buying and selling your first home within the next six months, and build up a portfolio of property sales and rentals if you want to be a credible developer.
One of the major decisions you need to make when choosing a property is if you want to buy and sell or buy-to-let. Buying and developing a property from scratch is a great way to control all of the transactions yourself, but it takes a considerable amount of work and you need a lot of money to start. Buy-to-let, on the other hand, is readily available and you don’t need a massive initial investment to get started. It is, however, much more convoluted when it comes to fees, interest rates and other hidden costs that you might forget about.
Choosing the right location
Location is important to any business, but it is arguably an even bigger component in the success of a property developer. When you are looking for land for sale, make sure it’s in a desirable location or somewhere that will be developed in the future. This is why it’s important to have contacts in the industry because it helps you plan your investments ahead of time so you can get the best deals as early as possible.
This is why timing is also a major factor in the success of any property development. For instance, if a train station is being built in a rather remote location, it means that prices in that area will rise closer to the completion of the build. As soon as the plans are announced, a lot of land in that area is going to be bought out and developed on in hopes that families and businesses will want to move or expand into the area.
Fitting in with the crowd
When you develop a property, be it commercial or residential, it’s important that you tailor your builds to the surrounding area. For instance, it’s a waste of time to build a residential building in the middle of a busy street with lots of foot traffic because it’s better suited for a commercial property. Similarly, if there are fantastic schools near the area you want to develop a property on, then make it a residential property with several small apartments because you can be sure that students will want to move in.