How to Get Started with Property Development

A short while ago, property development as a money-making enterprise became hugely popular. Houses were rising in value so even if you did nothing at all to one after you bought it, you could wait a while and all of a sudden it would be worth more than you paid for it.

How to Get Started with Property Development
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For those who did put some effort in, the value would increase exponentially, and the resultant finished product could be sold for a considerable profit. And that money could then be used for the next project, or to buy a home you’d much rather live in.

With it being a seemingly ‘easy’ way to make money, more and more people started doing it, and now it is a little more of a challenge. The rise in house values means it’s more expensive to get started in the first place, and there is more competition for houses with that potential.

If you already have a property you want to start developing or are looking to get started from scratch, here are our top tips:

• Find the right property

This is quite literally the most crucial part of the whole process. If someplace seems too good to be true, do your homework. Is something going to happen in the nearby area that will lower all the house prices overall? Is it known as a ‘bad’ area? What type of person are you likely to sell to and does the area meet their needs? Think about things such as public transport links being required for those without cars or schools being near if you think the home would suit a family.

Despite what people say, it’s not just about location either. You also need to consider the buying price – paying even a few thousand pounds more for it in the first instance means you have lost that off your profit because you will only be able to sell it up to a specified ceiling. 

Also, how much work does it need doing? Necessary cosmetic work can be done relatively cheaply, but kitchens and bathrooms cost more. Rewiring electrics again adds a considerable amount to the bill as will a new roof so have a decent survey done before you commit. Structural issues can also condemn a property, so get those checked as well.

• Get a bank of trusted suppliers

You’re going to need lots of items to do up a property, so make sure you source everything from the right place can be crucial. Overpaying for things or having to wait months for delivery can cripple a project, so use trusted retailers such as Online Door Store. Check to ensure pricing is competitive, and you won’t end up eating into your budget.

• Stay objective

Yes, you might like those natural stone tiles but just remember – you aren’t going to be the one living in this property. The vocation of a developer is to make the most out of their projects, so you need to keep this objective in mind when making your design choices. You need to make the property sellable and get the right balance to ensure you don’t spend a lot of money on items that you simply can’t add onto the selling price.

Property development can be a challenging but highly rewarding path if you go into it with the right frame of mind and do your research! It’ll be really satisfying when you complete a project and better again when you sell it on, just make sure all your hard work is worth it in the profits you bank.