Do you like the idea of buying, improving, and selling rental properties? Property development is indeed becoming increasingly popular nowadays. However, it comes with some considerable risks when things go wrong.
Like anything else in life, you have to put effort and time to learn how to buy properties for investment. Here are five golden rules to take into consideration when making choices and taking risks in property development.
Location is Key
The location is vital in property development. Areas with convenient access to schools, business, transport connections, commercial places and sites with poor crime rate, tend to be desirable, regardless of the state of the economy.
First-time buyers, especially the millennials, are predominantly looking for properties that support the millennial lifestyle, such as easy access to universities, shops, cafes, restaurants, gyms and a lot more. Consider carefully where the location or property is based in to make sure you are far away from making risky decisions.
Specific areas which undergo economic or development boom have strong rental demand and can be strong potential buy-to-let investments. However, it comes with risks because once the boom comes to an end, the need for rentals might also subside.
Know Your Competitors
It is also essential that you know well your competitors – that is what business is all about. Get updated what are the recent trends the big players are using, whether they went for the eco-friendly concept or promoting strictly smoke-free properties. You can use their idea to create a similar plan or build a completely different one that would combat their ideas.
Get a Good Team
Your team will most likely involve a property lawyer, architect real estate agent, accountant, and contractors. It is essential that you hire the best people to be in your team to avoid problems that will only bring you issues in the future.
Contractors, for example, have a vital role in any property development. If a problem occurs due to shoddy roof tiller or haphazard plumber, it will reflect on your track record. So, you need to work on making a strong property development portfolio and reputability.
Set Realistic Time Frames
Setting realistic time frames will help you set your budget more accurately and finish other necessary work concerning the property efficiently. It is crucial for a property developer not to make promises you can’t keep.
Know Your Budget
Plan carefully and make a detailed feasibility study that will suit your budget. Be realistic than optimistic in planning and include all the little costs you’ll spend. Also, allot an amount for contingency in case unexpected expenses crop up.
Interested in Property Development?
If you are interested in joining the property market, the team at Property Development System can help you become a property developer. They provide step-by-step property development courses that are comprehensive and realistic and are proven to help you find, develop and profit from property deals.
Whether you are a property investor shifting into developing properties, or a complete newbie in the field, the team at Property Development System will help you succeed in less than 12 months with their best property development courses.