Making a good profit from buying property, doing it up and selling it on is a career path that has crossed many people’s minds at some stage, whether it’s from personal experience or simply seeing people on television making it look easy. Either way, it’s something many people get into and make a lot of money from, and you don’t necessarily have to have a lot of experience from the beginning to make it work, but there are certain points to check off your list before you begin.
Firstly, consider whether this is really for you. You might not know how your project is going to turn out, but you can be pretty certain it’s going to require a lot of detailed planning, extensive attention to detail, and a huge amount of hard work from start to finish. Property development is stressful because you take on a lot of responsibility, not only for yourself but for the property you’ve invested your money into, your family and even the people you’ll be employing to help you. The work is likely to be exhausting. If this is a problem for you, maybe you should choose a different path.
If you decide you’re capable of coping under the pressure, that’s great, and for some people this brings out the best in them. You can move onto the next step: arranging your first project. Financing your project in the long term is going to be vital, since it’s not just the initial investment you need to find upfront, but all the costs of running the project through to the end need to be accounted for. Whether you’ve got the money yourself or need to borrow it, make sure this is in order before you begin.
You’ll be looking for a property that’s not in the best shape, meaning you can modernise and improve it without too much investment. To get this at a good price, the owners you’re buying from need to be motivated to move sooner rather than later. When you come to sell it on, you’ll also be looking for someone keen to make a quick decision.…