10 Worst Mistakes Made by an Amateur Property Developer
Last updated 23/07/2018
Property development doesn’t always have a fairy tale ending which sees the investor run of into the sunset with a pot of gold.
Here are the top 10 mistakes made by an amateur property developer, so you can avoid them.
1. Buying property in the wrong area
You’ve seen a cheap house, and know exactly how you can do it up but now after months of hard work you can’t sell it and no one wants to rent it.
Why? Because the property was in the wrong area. When buying a property it is more than just price, but location as well. As that dream bargain could quickly become a nightmare.
Is it an outdated area or one with new developments planned? Don’t make one of the top 10 mistakes an amateur property developer can make do your research, check the schools and transport links, would someone want to live there?
2. Know your budget
It is easy to get carried away with renovations, but you must know your budget and not doing so is one of the top 10 worst mistakes made by an amateur property developer. Do not borrow more money than you need, and shop around for the best loan or mortgage deal. Sometimes less really is more.
The next top 10 mistake made by an amateur property developer is underestimating the time a renovation project can take, or the fact that it can be a number of months before you receive an returns. Take the time to do your preparation, get the forms filled, the permissions acquired as it could be costly in the long run.
4. Poor Tradesmen
If you are not a keen on the DIY approach then you will need to invest in some reputable tradesmen to do it for you. Do not go for the cheapest but instead the most recommended as poor tradesmen is one of the top 10 mistakes made by an amateur property developer.
5. Bargain Materials
When renovating a home it can be luring to save some cost and buy some cheaper furnishings, or budget range fixings. This is a top 10 mistake that amateur property developers make you really must go in with the attitude of investing to stand the test of time.
Putting as many bedrooms as you can into a property will not make it more appealing or make your more money and is one of the top 10 mistakes a property developer can make. Think of the space practically and how it will work with someone living in it.
7. Going Overboard
The next top 10 mistake amateur property developers make is going a bit too overboard. The house does not need to be all singing and dancing, instead it needs to be functional and practical to live in.
8. Keep Personal Taste At The Door
Do you have a statement leopard print wall at home? Or a feature bathroom? One of the top 10 mistakes an amateur property developer can make is to decorate to their own taste which could put people off. Keep it clean, simple and modern.
9. Know the market
You have spent your hard earned money and time, but now you can’t sell it. Not knowing the market is one of the top 10 mistakes that a property developer can make, knowing when to wait and when to sell is key to good returns.
10. Shop Around
You’ve found the property now you need the finance and it can be tempting to accept the first one that is offered to you. Not shopping around and exploring your options fully is the final top 10 mistake an amateur property developer can make.
If you want further advice have a look at the other JaeVee Blogs.