With a shortage of supply not about to ease up anytime soon, there has never been a better time to get into property development. Opportunities are all around you. With a little savvy determination, you can take advantage of them and start your own property portfolio. What are some important considerations and how can you get your foot in the door?
It’s a rising market.
In spite of going up and down, property is still a solid investment. There are two main routes you could choose. You could buy to let, or simply develop to sell as a home. Both will make you money if you choose the right property. The key is choosing to invest in an area that still has some capital gain. You could choose to buy property in an area that is developed. It is just that the opportunities for a return on your investment will be lower.
Try and focus your search on areas that are up and coming. Keep your eyes on the property press and get to know the area a little. If a neighborhood is a bit run down but nevertheless close to a city centre, that might be an indication of a good opportunity. It is a fact that yesterday’s ghettos are todays cool and hip spots. Typically wise investors spot this and move in. Areas close to retail developments can be a good bet. Buyers are attracted to areas with good, or up and coming schools. Proximity to motorways and access routes is another prime contender. You could consult local authority plans for road building and see where the infrastructure is going in.
Take your time to become familiar with an area. Do as much research as you can. It’s possible to run online searches for properties pretty much anywhere. You may find that you never even have to visit! However the canny investor will always inspect a property and take legal advice on the title before doing anything.
Get your finance in place.
Whether you have spotted a bargain, or have seen a ‘must have’ property coming up at auction, it will pay you to have your finance in place. If you are already an investor it may be that you can arrange a loan based on the equity of an existing property.
You will be in a much stronger position if you have a deal ready and know exactly how much you can afford. Don’t be put off by the reticence of banks to lend you finance. There are professional companies such Ravenmann Property Finance who will work hard for investors. Where there is a will, there is a way. Get advice from professionals who have made this their business.
Ready to Go
With your finance in place and your offer secured, get moving as quickly as you can. Make efficient practical decisions that can get your builders working. Decide whether you are looking to let the property, for example as a student house. Or are you looking to rent or sell to a family? Having decided what needs to be done, keep an eye on the timelines and the budget. Do this well and you could already be eyeing up the house next door for your new investment!