One of the first steps toward profitable property development would be to investigate the area where you would like to purchase real estate. You should also take into consideration the intended market and type of property in which you would like to invest.
Investigate the Market
Begin by meeting with several local estate agents and gain some of their expertise. The following are some important elements to consider when looking for information on the area where you would like to purchase your property:
Take into account the social demographics. With the divorce rate at an all-time high, and a maturing populace, there is an increasing amount of single people looking for an investment.
Think about the supply and demand elements. The UK planning system has been unsuccessful in reaching the number of homes that people are demanding. This is the primary reason that housing in the UK has seen dramatic increases. The low unemployment rate and low interest rates have exasperated this fad.
Get a handle on the local economy. Do your homework and dig up the totals from your local authority planning department for the numbers on new houses constructed as a percentage of the stock already in existence. A good indication of a progressive area is growth in business districts.
Don’t go off the path. Stay within the areas that you are familiar with and investigate them thoroughly.
Have a goal in mind. Does your plan fit in with the market? Does it go with the area that you have picked, and the ways the people choose to live in that local?
Take a look at what your clientele desires. Wealthy couples and young professionals without children seem to prefer chic apartment city life. Look at the current trends and take into consideration the type of living arrangements that will keep its value because of the quality and neighbourhood. Families need fortuitous locations, where the schools and transportation are first-class, the environment is safe, and there is plenty of parking. They also need additional room both inside and out, low living expenses and a creative design.
Selecting a Property
The basic principal of property development is to purchase low and sell high. Choose real estate that can be bought and then sold for a profit. Buy well and know your risk limit. Before you purchase a property, analyse the many ways of reaching your goal of gaining a sizable profit:
Little improvements. A basic cosmetic restoration can increase the value of a property without the added expenses of involving architects and planners.
Transforming the Property
Turning a house into a row of apartments involves intricate financing and budgeting. If you’re thinking about using your own money to fund this project, remember that a major developer would refrain from using this method. There’s often a large gully between the financial worth of a home and what it might bring in once it’s been converted into flats. There are also a lot of costs and hazards in relation to this. It may be more advantageous to convert the apartments back into single housing. Planning consent will be necessary no matter what you decide to do.
Change of use. The alteration of a property from a business into a home is a complicated undertaking. When turning a pub into apartments, the biggest obstacle would be to purchase the property without first obtaining a planning consent for a change of use.
Do your research and never purchase the property on the assumption that you will obtain the change of use. It also helps to discuss these issues with the planning officers. Most of these deals are finalised when planning authorization has been granted.
Tip: Leave this transaction to the professionals if a vendor is only interested in selling on an unconditional basis, and where you pay full price no matter if the consent is in place.
When it comes to conversion, make sure you are knowledgeable in regards to the building standards and architectural potential of an investment. You’ll most likely need a professional team to assist you with the following:
- A quantity surveyor to determine expenses
- An architect to create the layout, obtain the planning consent and manage
- An engineer to secure a safe and structurally sound resolution
- An estate agent to assist you in the sale of the finished product
We hope you find this useful and when you come to sell your property why not save yourself thousands in estate agent fees by letting us sell it for you.