How to Get Started in Property Development

How to Get Started in Property Development

Property development involves the purchase, renovation or construction of real estate. It requires a substantial financial commitment and is a high-risk activity, but it offers a great return on investment if done well. Property developers are required to do a lot of research and planning before committing any funds. They must determine the market and the needs of their target demographic to create value for themselves and those who will buy or rent the finished product.

To achieve the best results, it is important to find a professional network that will offer support throughout your project. This includes a reputable contractor, architect, conveyancer and accountant. You can find these professionals through word of mouth, social media or online searches. When choosing a professional, consider their track record and how long they have been working in the industry. You may also want to work with an accountant who specializes in property development and can help you formulate a profitable strategy.

One of the biggest challenges of property development is that it takes a long time to complete a project. From purchasing the land or existing building through to final sale or rental, this process can take up to a couple of years. This can tie up your profits and equity for a significant period of time. To minimise this, some developers will invest in multiple projects at once, using development finance to spread their risk over a number of properties.

Another challenge is that it can be difficult to secure financing for property development projects. This is because lenders typically only lend money for the “hard costs” of the project - not the total end value. They will often not lend for things like architects’ fees, Council fees and other consultants. This means you will need to have a good amount of savings saved up before you can start looking for projects.

Ultimately, it is possible to make large returns as a property developer, but this will depend on the timing of your investment and how well you manage the project. The most successful developers will be able to capitalise on the strongest market conditions, while avoiding over-extending themselves or entering into projects at the height of a bubble.

Property development is a great way to generate a strong return on your investments, but it’s important to have the right team in place before you get started. By following our tips and working with a professional property developer, you can ensure your success. To learn more about how to get started, contact the team at Hubb Property Group today! Our short and medium term investment opportunities are backed by Debentures. Click here to learn more.

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