Property development starts with buying a property developing , renovating or just changing it then selling it to make a profit. Planning and research are the two most important things when getting started you don’t want to pay too much for the property from the start.
Firstly start buy planning your budget ask yourself what you can afford to save each week and what you can afford to repay also allow for extra costs eg, insurance , tax, rates ect.
You have to find a lender or bank for the loan shop around as this can save you thousands in the long run. There are 2 basic loans, interest only which has less repayments and interest and principle, I suggest interest only as it frees up your money for the construction phase. A time frame has to be made as well you have to allow a certain amount of time that you can work your budget around.
Research is very important you have to be able to read the current market so before you buy visit real estate agentcies go to property auctions get a feel for the area in which you are looking to buy. buying a small unit in an area full of families is just 1 example of what not to do, buy properties with potential to improve ,extend ,renovate not knock down not for your first development the worst house in the best street Is the key to maximise profits.
So now you have purchased a property its time for the construction phase you have to brain storm as to what you can do with your property e.g. Put a second storey, extend or renovate existing adding extra floor space is the best way to increase the properties value but requires more planning and permission from council before work can commence. Just renovating the property can be profitable but there is already is a lot of competition and other people doing this.
Are you able to do it yourself from design and draft up plans to demolition and painting anywhere you can do it yourself you will save money that is if you have an idea about what your doing. Programs like CAD computer aided drawing or REVIT can be used to design your development you can learn how to use the programs quite easily through book and the net without the use of architects and draftsmen which are quite expensive. If you are planning a big extension or addition that requires council’s permission this process can be time consuming so allow for this in your time frame. With the larger developments select a builder that is licensed reliable, ask friends or family some1 with a reputation is a lot better than the unknown. Make sure that you have contracts with your builder get a fixed price for the work you can get standard contract templates or get a solicitor to write one for you and to check the contract before signing anything. Now back to the planning make sure you have detailed plans so builders can quote easily with a specification
E.g. finishes to house type of paint, tiles, timber ect right through the whole property if all is planned well you can avoid changing the plans and the contract which is very costly in the end, construction companies always charge more for extras and they take longer .make sure you get all your inspections and certificates right through the construction phase e.g. Engineering, water proofing, plumbing; electrical these will need to be given to council
If you are just renovating the property try to do as much as you can yourself with out getting a builder but getting the specialised trades and paying them directly when designing the finishes e.g. tiles colour scheme don’t personalise the property what you like might not be what the majority of people like
Selling your property usually you will have to enlist the services of an estate agent private selling can be done but generally doesn’t give your property the exposure that’s need for maximum profits. Dress your property with nice furniture as if somebody is living there you can hire furniture for this if need be the outlay is worth it in the end because presentation is everything
So now you have sold your property you need to total all of your expenses including everything repayments materials selling fees and keep a diary of how much time you have spent on the project .take the total of all your expenses add it to the purchase price then subtract that from the sale price hopefully your not in the minus, you also need to take a note weather the time spent is worth the money made. Good luck and get out there researching
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