Property development can be a hugely enjoyable and financially beneficial endeavour. It is vital that anyone thinking of becoming a property developer knows what they are taking on before they make the leap.
Here are five things that any prospective property developer needs to consider before they begin.
Find The Right Property
The right property will depend on your circumstances, how much risk you are willing to take on and practicalities like how close the property is to your home. If you are planning to be hands-on with the development, then a closer location will be desirable.
If this is your first property development, it is advisable to start small. You may want to start with renovating a single home so that you can get an idea of timescales and practicalities. Once you have tested the water, you could then try out larger scale developments.
Budgeting And Financial Backing
You will need to ensure that you have appropriate financial backing before you begin any project. Whether this is from your own savings, a bank loan, investors or a combination of these, you will need to ensure that you have a sensible, thought out budget in mind.
You will need to ensure that you have the cash flow to start and complete the project. It may be advisable for you to invest in an accountant’s services to ensure you are making the most financially prudent decisions.
Get The Lay Of The Land
Before you spend your hard-earned cash on a property, it is crucial to ensure that you have all the correct surveys done. Surveys are critical to ensure that you don’t encounter any unpleasant surprises when you start work.
One of the essential surveys you should have carried out is a topographical survey. This will enable you to see what kind of man-made or natural obstacles to development there may be. If you’d like to know more, check out Arbtech for more information on how topographical surveys work and how they can benefit you and your development.
Choose Reliable Workpeople
Your property development will only be as good as the people that work on it. It is essential to ensure that you choose the best-qualified people to carry out work on your property.
Research all the workpeople that you may need for your development beforehand. Get a good idea of costs, what you need to look out for, and what you need to avoid. Doing proper research early in the process will be invaluable when your development begins.
You should check any workperson’s accreditation with UK regulatory bodies and professional standards organisations, such as the National Association of Building Contractors.
Consider A Partnership
It could help you begin in partnership with a more experienced property developer for a first development venture. This can help mitigate some of the risk, as you will share both the risk and the reward. It will also help to choose someone with experience to help guide you through the process.