Becoming a property developer is an appealing option for many people with financial stability, creative talent and those looking for some extra income and investment. Despite the fact that the property market has seen a rocky road since the recession, with house prices either falling or rising all over the country, it’s also much easier for young professionals and first time buyers to get their foot on the ladder.
As well as this, the London housing bubble continues to attract foreign investors what are paying extremely high prices from city centre property so things could be looking up for those seeking to buy a place and sell it on for a profit.
If you’re thinking of getting your hands on a property to renovate, rent or sell on, here are three key things that you should bear in mind.
- 1. Look at Location
One of the first things to think about is where you will start to invest. A location that is popular doesn’t necessarily mean that it is good, likewise an area that is unappealing to buyers at the moment, may actually be fertile ground. As famous property developer Gary McCausland says, “A good location, for me, means somewhere on the fringes of a good area that, in time, can become part of that good area.” Try and pick areas near schools, public transport and green areas but the trick is being able to predict the areas where the only way for prices to go is up.
- 2. Start off Small
To get into the game, you might need some practice first. It’s a good idea to start off small since developing property is a risky business and you could lose out if you don’t calculate right. To increase your chances of large profits try to buy at the lowest price possible, renovate within reason, stage your home to viewers with furniture from a trusted supplier like davidphillips.com and try to sell for the highest possible price.
- 3. What Are Your Goals?
In order to have a plan you must make a clear decision about what you are getting into property development for. Do you want to flip homes for a living and leave your day job? Do you want to become a landlord for many properties or just one? Or do you just want to invest in temporary, creative projects for a bit of money? Once you decide what your goals are, it will be easier to figure out how much time and money you can invest and vice versa.
The great thing about getting into property development is that you don’t have to take a course or be qualified to start. As long as you can sell on for a profit, you can be successful.