Property Development: A Lucrative Option for Investors
Parmdeep Vadesha
September 12, 2008
Many regard property development as either the next step beyond, or a more profitable option to being a straightforward property investor. Recently a number of television property shows have highlighted the various advantages and rewards that developing a property offers. Although many people are uncertain about developing a property, experts say that it doesn´t have to be a risky business as long as you possess the right knowledge and are aware of what´s in store for you the moment you set off on the journey to achieving remarkable profits via the property development route.
What is property development?
Essentially, property development is very simple and involves some very basic steps: setting up your finance, looking for a property, purchasing it, renovating it and selling it or renting it. This may involve renovating a flat, refurbishing a house to its original appearance or transforming a building into posh new apartments for example.
What to consider in a location
One good starting point is to get in touch with local estate agents. Talk to them and obtain the knowledge you´ll need down the road. Here are some facts you should take into account when considering a location:
Social demographics. The number of single people needing homes is rapidly increasing. The rise is set off by an increase in divorce incidents and a rapidly increasing proportion of the population of retirement age.
Local economy. Check with your local authority planning department for the number of new houses constructed as a percentage of existing stock. Take note of growth in business sectors as this is a good indicator of an area poised for development.
Types of occupants. When developing a property, you should consider the kind of residents you´re targeting. Young professionals usually prefer to live in city centre apartments in close proximity to business establishments. If you´re aiming for families with children, the neighbourhood that your property is in should have good schools and transport, enough parking, safe surroundings and generally nice neighbourhoods.
What to consider when converting a property
The key to property development is to buy low and sell high. Look for properties that, with suitable approach, can be resold for a profit. Before you make a purchase be sure to look at various factors involved when you want to reach significant profits through property development.
Minor developments. The value of a property can be improved with general cosmetic improvements that may not involve the services of architects, planners and a chunky investment.
Transforming a property. The simplest method in property development is to take a house and convert it into flats, but the task involves substantial financing. Many professional developers shun the idea of using their own funds for property conversions so they work with ´money´ people instead.
Building regulations. When involving yourself in property conversions, your level of comprehension when it comes to building regulations and the various architectural possibilities should be good enough for the purpose you have in mind. When you need to transform a property to anything more substantial than a house, you might want to consider the services of a professional team that will include an estate agent, an architect, an engineer, and a quantity surveyor.
Once you have learned perfectly all the necessary information you need, you´re ready to get on the mission that will pave the way to a lucrative endeavour.
What is property development?
Essentially, property development is very simple and involves some very basic steps: setting up your finance, looking for a property, purchasing it, renovating it and selling it or renting it. This may involve renovating a flat, refurbishing a house to its original appearance or transforming a building into posh new apartments for example.
What to consider in a location
One good starting point is to get in touch with local estate agents. Talk to them and obtain the knowledge you´ll need down the road. Here are some facts you should take into account when considering a location:
Social demographics. The number of single people needing homes is rapidly increasing. The rise is set off by an increase in divorce incidents and a rapidly increasing proportion of the population of retirement age.
Local economy. Check with your local authority planning department for the number of new houses constructed as a percentage of existing stock. Take note of growth in business sectors as this is a good indicator of an area poised for development.
Types of occupants. When developing a property, you should consider the kind of residents you´re targeting. Young professionals usually prefer to live in city centre apartments in close proximity to business establishments. If you´re aiming for families with children, the neighbourhood that your property is in should have good schools and transport, enough parking, safe surroundings and generally nice neighbourhoods.
What to consider when converting a property
The key to property development is to buy low and sell high. Look for properties that, with suitable approach, can be resold for a profit. Before you make a purchase be sure to look at various factors involved when you want to reach significant profits through property development.
Minor developments. The value of a property can be improved with general cosmetic improvements that may not involve the services of architects, planners and a chunky investment.
Transforming a property. The simplest method in property development is to take a house and convert it into flats, but the task involves substantial financing. Many professional developers shun the idea of using their own funds for property conversions so they work with ´money´ people instead.
Building regulations. When involving yourself in property conversions, your level of comprehension when it comes to building regulations and the various architectural possibilities should be good enough for the purpose you have in mind. When you need to transform a property to anything more substantial than a house, you might want to consider the services of a professional team that will include an estate agent, an architect, an engineer, and a quantity surveyor.
Once you have learned perfectly all the necessary information you need, you´re ready to get on the mission that will pave the way to a lucrative endeavour.
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