PROPERTY DEVELOPMENT ADVICE
There’s potentially a lot of money in property; a fast-paced, highly profitable industry that attracts many ambitious entrepreneurs every year. But there are also significant risks when entering the unwieldy property market.
Why become a property developer?
Property development is a very exciting industry and as such appeals to a wide variety of entrepreneurs. There is significant money to be made, although you must be very disciplined and shrewd to do so. Entrepreneurs who like more freedom to express their creativity are also drawn to property development, as are those who are not ready to give up their day jobs. It’s possible to become a part-time property developer although the turnaround time per property will be increased, unless you appoint a professional property developer.
What skills will I need?
A fantastic head for figures and a shrewd knowledge of the property market are essential. Property investment is very cash-intensive and you’ll need to be confident financially in order to maximise returns. Making poor investments can quickly sink a start-up, so you’ll need to start small and build your capital by making low-risk investments. You’ll also need to know the best way to buy properties, often at auction, off-plan, in developing areas or in un-modernised areas where the cost is lower. To avoid costly mistakes, get some property developing advice well before you start your project.
Start-up costs vary hugely depending on the area in which you buy, the renovations you plan and your target market. If you’re paying contractors and tradesman then you won’t require tools and supplies although you’ll obviously need to budget for their wages. You may also need to factor in marketing and promotion if you don’t plan to sell the property personally.
Your first step
Appoint Krivco Consultants as your advisers. We will analyse the property market. Successful property developers make money when buying a property rather than selling it because returns are not guaranteed. Buying at under market value is therefore essential. A good knowledge of property auctions, off-market prices and other key indicators of value is essential to ensure you’re making money from the first stage.
Contact us if you need further details on how to maximise on the potential of your properties.