Deciding to move ahead with your property development investments is an exciting time for any budding property developer. You may have an idea of what kind of strategy you want to take and how you’re going to accomplish it, or maybe at this stage you’re struggling to decide which path is right for you. Here we’ll take a look at the top 3 property development strategies, which will hopefully allow you to make an informed decision.
Before we begin, have you considered how to fund your property development ideas? Fitzrovia Finance are an established provider of secure property loans. Check them out by clicking the link.
Property renovation: To sell or rent
It’s the simplest and perhaps the most basic of property development approaches. Buying a run down property in need of a little TLC at a low price, fixing it up to a high standard and then selling it on for a profit. This is the perfect starting point for those embarking on property development for the first time. If you decide to take this approach, it’s important to know about which route you’re going to go down after you’ve completed your renovation on the property – to sell on or to rent out? Take advice from estate agents and keep up to date with the latest in home design, for example – open plan living spaces and a spacious outdoor area or even parking availability could be worth more than an extension.
From commercial to residential
Purchasing a commercial property and then renovating it into a residential property is another popular development choice. These kind of developments are exciting because it means you have more space to work with and the more residential units you could create and then sell on individually. For example a disused factory space or former office block could have the potential to be turned into a number of individual apartments. Larger projects like these usually guarantee that lenders are more likely to provide finance as the security is greater.
Buying land to build
An ambitious project to say the least! There’s nothing more exciting then spotting a potential piece of land that could be turned into a block of apartments or the perfect location to develop a couple of new build homes. The profit potential is certainly tempting. If this is a route you are considering then it’s vital you ensure that the land has planning permission available as you may struggle to obtain the finance you need without it. In addition, if you have no experience of construction then it’s vital that a project manager/contractor is hired to help oversee the entire process. You’ll also need to bear in mind potential set backs such as running over time and budget on your project.
These top 3 development strategies are perfect for those looking to secure their future and create a potential ongoing source of income. Finding the right finance partner for your projects is also important, so make sure you complete plenty of research before you consider lending from a provider.