How to Become a Successful Property Developer in the UK
If you want to make a return on any property investment, then you'll need to complete some basic research before you commit to buying.
Location
The first and foresmost question to ask yourself is the Location, the Location and the Location of the property. It is therefore obviously helpful if you already know the area -if its an area close to where you live or where you've lived in the past, you'll have more information than you think you do. Most people would recommend that you at least know the area to some degree before you invest your capital in property.
List of Information You'll Need Before You Buy Your Property
The first thing to do is get as much information as you can;
- What are the actual sold prices of the area/street?
- Which estate agencies are prominent in the area?
- Note how long it takes for properties to sell.
- What's the variation in prices between for example houses with extensions to houses without?
- Flats, Can one bedroom flats be turned into 2 bed flats what are the prices of the refurbished flats?
- Different degrees of refurbishment- What's the price variation between houses completely renovated compared to others needing work?
- Keep abreast of incoming developments, or attractions to the area, for example, new train links, Olympic Games, Commonwealth Games, Ex Housing Authority Housing etc..
Local Area
This above list is just the initial start of questions that should be in your thoughts. You should probably focus on one area at a time, drive about, notice where the local amenities are situated, local shops, supermarkets, schools, public transport, bus routes, underground, railways and motorway links. You should pick up local newspapers, estate agency lists and check out other internet sites which advertise property for sale.
Finance
As well as the location you must sort out your finances, find out how much you can afford to spend on purchasing your development property. Remember to allow for additional expenses, such as solicitor fees and other legal expenses such as stamp duty. Refurbishment costs, contingency funds, loan payments, structural engineer or architect fees, and building warrant application fees if you're planning more than just a redecoration.
Viewing Properties
Once you've decided your maximum budget and chosen your area, you'll then start viewing properties. This can be very time consuming, but the more properties that you see will give you a clearer indication of the local pricing structure. You'll see for yourself why some properties aren't selling, sell fast, are overpriced or are just complete no no's. If you want to play very safe, then maybe you should consider this, Would you want to live there, once you've refurbished the property, if you would then fine, if not, when you come to sell, who are you going to sell to? Are you really going to make any profit? If you really don't like the area, will anyone else? Not everyone thinks along these lines, but if you are wary and this will be your first development it is a point to bear in mind.