If you’re new to property development and are trying to make cash by either selling or renting then you actually want to do some analysis particularly during this economic climate.
Location, location, location as the TV show says is very important especially if this is your first property development. You need to have a good plan about the house market in the area you’re thinking of buying. Buying locally may be wise for a first time property developer as you must have a sensible idea of what areas are being developed and if there’s a need for rented accommodation in the area. If you are unsure of what’s happening in an area you will need to do some research. You could ask local real estate agents, read local papers and just generally ask people in the area. For instance if there’s a university in the city and you’re planning on renting out the development then find out where it is and check the properties in that area. Also observe local transport and facilities.
A nice way to get ahead of everybody else is to know where the up coming areas are within the town. Many cities have regeneration areas where heaps of local government cash are being spent on. A helpful tip is to be cautious of what real estate agents say. Bear in mind they will be wanting to make a sale so they may describe an area as up and coming when essentially that might not be the case. Ask them what kind of properties have sold recently and for how much.
Another useful tip is to remember to keep your business head on and always follow your business plan. It’s terribly easy to fall in love with a property that is not going to get you the best return. Just because you like a property doesn’t mean it can be the correct property to develop to either sell or rent. You must have a list at hand with what you require from the property and stick to it. Once you have chosen the proper property you’re then going to need to look for the right builder to do the development. This part might make or break your development so it is vital to look for the right building company.
Hiring a builder will only give you skilled workers which means you may be acting as your own contractor that suggests that you may have to prepare all the required permits referring to the project. This is often fine if you’ve got the time to do the analysis necessary. You will also have to coordinate all aspects of the development which is fine for an experienced developer but not for a first timer. Coordinating the architect, designer, electrician plumber etc could be a tedious job if not done correctly. It is a little bit of a balancing act and shouldn’t be taken on lightly.
First time developers almost certainly ought to hire a contractor and let the consultants deal with all of the above. But like the property, you need to do a bit of research to find the best one. Check on-line for building contractors and ask for references.
Like everything we do in life, preparation is the key to a successful project. The more time spent researching every aspect of your property development, the more likely your development will turn out well. At the end of the day you would like to make the most amount of profit, and you won’t do that if you jump in head first without looking at every detail.
Another great article by West Springs Homes for Sale