Property development is an option many consider to build assets alongside pensions. Developing property is an exciting job and has the potential to help you increase your earnings over time. However, being a property developer takes a lot of hard work and you need a strategy in place if you’re going to do it right and succeed.
There’s so much to think about when you’re first getting started. You need to prioritise where to focus your time and attention the most. Learn what to consider when developing property and factors to weigh and contemplate before and during moving forward with a project.
Location, location, location. It’s important that you consider the location or area you plan to build before you start. You’ll need to take into account what you’re building and where it makes the most sense to create it. The right location can make or break how successful you are in the end when it’s time for your project to launch and go live. Be sure to do your homework and write down the pros and cons of locations you’re considering.
Cost & Budget
Another element to consider when developing a property is cost. Consider what it’s going to cost you to build and how much it may set you back if you have trouble selling or leasing the commercial or residential property. Create a budget for your project and know precisely what money you have to work with. Know you have options when it comes to property development finance and getting the funding you need to proceed and ensure a positive outcome.
You also need to consider the design and development aspects of building a property. You want your property to not only look attractive but to function well and correctly too. Research what your potential buyer will be looking for to ensure that your project stands out from the competition. You’ll need to ensure you follow through with designing, planning, and knowing the required permissions and permits you need. You’ll also need to make sure that the design is suitable and can be done on time and within your budget.
Your final question when you’re developing property is what your plan is to do with the building or structure when it’s complete. For instance, you’ll need to determine if you plan to sell or rent out the property. It all depends upon how you want to make a profit and how quickly you want to get it off your hands. You’ve likely answered this question in the business plan you drafted prior to starting the build, but know that your decision can and may change. If you plan to sell it then contact a marketing agency or property agency and get the property on the market as soon as possible. Renting it out will come with ongoing costs and tenant risk. However, there is potential to make a steady income on it from rentals.
These are a few factors to consider when developing property. It’s a big job and undertaking but has the potential for great rewards when done right. Let these tips help you to know what will require your focus and how to move through the process from start to finish successfully.