Property development is a fascinating field of work, and one in which a lot of money can be made. That said, it is important that you know what you are doing to get the most out of your investment. Eugene Bernshtam, a veteran in the industry, shares his key pieces of advice in relation to this.
Property Development Tips by Eugene Bernshtam
One of the most important things to consider is location, particularly if this is the first development. You need to understand your area’s house market for your first purchase, which is why the recommendation is to buy locally, as you know this area. If you don’t know what is happening demographically in the area you are considering, then you need to do some research first.
You should also try to stay ahead of everyone else, by staying aware of which up and coming areas are developing. Regeneration areas, for instance, where the local authority is investing in, are good places to look at. Build a network with estate agents, as they generally know what is happening where. Find out the types of properties that are selling well right now to get a good idea.
Furthermore, you must see property development as a business, and be business-minded in your approaches. Try not to fall in love with properties, therefore. Just because you like the look of something for you personally, does not mean it is going to be a good investment. Instead, you should have an idea of what you want before you start looking, so that you don’t let your emotions deviate you from your plan.
One of the most important relationships you will have, is that with your builder. They are the ones who will make or break your development. Choose very wisely, therefore. You also need to look at what they will and will not do for you. For instance, you may need to apply for permits yourself, do the necessary research, and coordinate all the development work. A building company may only be able to work on the outer shell, which means you also need plumbers, electricians, architects, designers, and more. You need to think carefully about how much you can take on yourself.
Of course, those people are the experts, and you need them on your side. However, you need to find out whether you will be better off hiring independent contractors and managing them yourself, or whether you want to bring in a single contractor who arranges all of that for you. Naturally, a single contractor is more expensive. However, it also means that you save more time and that, if a mistake is made, it won’t be your responsibility (and expense) to have it resolved. Whichever you choose, make sure that you ask for references and look into reviews and experience.
The key to being success is proper planning and preparation. The more research you do, the more likely it is that your property development will be successful. Good luck!