Published On: Wed, Mar 21st, 2018

Tips for Starting a Property Development Business

Despite the constant message of uncertainty in the economy, starting a property development business has always been an appealing sector to get in to. No matter where you are in the world, people need houses to live in and this could prove profitable for your plans to start up in this sector. As with any business, diving into the deep end is not ideal and doing your research is crucial when deciding where to start investing your money. Planning and implementing a strategy is the way to make it work in this business, plus taking sound advice from people who have experienced both the rewards and pitfalls is paramount to your success.

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photo/ Michael Jarmoluk via pixabay.com

Take a look at some things to consider when looking at going into property development.

Develop a business plan

Every business needs a plan, and property development is no exception. This sets out specific goals and targets and outlines the ways in which you will achieve your objectives. If this business is to become established and larger than a one-man band, then considering how hiring other people will help grow your business plus what marketing efforts you will use to get your name out there will be needed.

Rental or buy and sell income

Choosing whether you want to buy properties to rent or buy to sell is important. Buy-to-let properties can yield a sustainable income and are mostly considered a long-term investment for people looking to hold several in their portfolio. Buying to sell can be a riskier strategy, as you are dependent on the market at the time. This method does provide a shorter-term plan and offers a quick turnaround on investment, but both options have to consider taxes and costs incurred with property sales and renting.

Ensuring sufficient finance is in place

Investing in property requires finance and a considerable amount of it. Ensuring you have adequate funds for buying property and the taking into consideration the other costs associated with purchasing land or property to develop will ensure you don’t have any nasty surprises along the way. There are many resources where can get cheap conveyancing quotes plus helpful advice and an idea of fees for services such as legal charges. Seeking help from experts is also important to ensure a good deal on your borrowing.

Location and price

It may seem obvious that location and price are a major factor when choosing what property to invest in, but there are many times where people have been fooled into thinking they are getting a good deal. If something is too good to be true, it generally is, and when this comes to property, you could end up with a money pit in the worst street in town. Timing is also crucial and ensuring you keep a level head when agents are trying to rush through sales will prevent you from making bad choices. Also if something comes up that is a good investment, being able to move quickly will also help your purchasing power.

There are many things to consider when entering the world of property development, so be sure to get sound advice from the experts when starting your new venture.

Author: Carol Trehearn

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