There is no doubt about it, property development can be a great career path to take and a potentially lucrative one too. Property development is one of the most popular ways to invest in the property sector but there are some questions you should ask before you dip your toe into the property development pool, here are just some of them.
Do You have the Necessary Resources?
When you have a portfolio of properties down the line, the overall aim is for them to pay for themselves and continually generate income; allowing you to take advantage of future opportunities, but to get to that point you will need the funds to get started on your very first property development. Can you raise the amount you need to go all in on your chosen project?
Are You Ready?
Property developers often have to act quickly and pounce on opportunities as they arise. Do you know which type of properties you would like to develop? Commercial properties could include office spaces, shop fronts or industrial plants. Residential properties commonly include houses, flats, bungalows and apartments. The overall development plan for commercial property can look very different to a residential one.
Have You Researched the Area and the Market?
Like any sound business investment, property development requires a solid strategy and plan to become and remain successful. The first step in any strategy and in any business is knowing your market inside out and getting to know your customer or audience and what they expect from you. Have you done your research?
Will You Sell or Rent Your Properties?
This is an important question to ask yourself, do you intend to sell on the properties you have developed for a maximum, quick return on your investment or are you happy to play a longer game and rent out your properties for slower and steadier growth on your initial investment? Have a plan in place before you start.
Will Property Development Suit Your Skills and Experience?
Whilst property development might sound simple, a property developer has to wear many hats over the course of a project to make it a success. Have your previous skills and experience stood you in good stead? Property developers are typically good communicators, are willing to take risks, handle pressure well and are excellent money managers.
Are you thinking of taking the first step on the property development ladder? If so, we wish you well and hope this blog has provided some food for thought. If you are looking to browse the very latest properties on the market, take a look at our ‘property for sale’ page here.