Starting A Property Development Business
Last updated 31/07/2018
The idea has been bubbling away for some time. You’ve done some research and now you want to make a go of it.
How exactly do you go about starting a property development business?
Read on for our top tips.
Starting your own company
The first thing to do when starting a property development business whether it be full or part time is to decide if you are going to do this as:
- A sole trader
- A business partnership
- A limited company
Being a limited company does limit your financial responsibility and also has some tax advantages such as being able to claim back the cost of materials and pay yourself a wage.
Sitting down right at the beginning of starting a property development business to find out exactly what you need is a good idea.
Take the time to prepare by looking at the market, upcoming and developing areas as well as doing your homework on what is and isn’t selling.
Things like the name of your company, registering yourself as a limited company, looking at the types of property available on the market as well as the market itself all need to be factored in.
You will need to know if you need an licences, insurances or planning permission and ensure all of the relevant legislation is completed.
Having a business plan which details if you are going to buy to let, or buy to sell is a great way to start your own property development business.
If you are unsure where to start it is advisable to speak to a professional to guide you along the way.
You do not need any experience or qualifications to start your own property development business but having some knowledge and business savvy will give you a slight advantage.
Starting your own property development business comes with some additional costs that you may not have known about that you will need to finance. These costs may include;
- Purchase of property
- Paying builders and materials
- Changing utilities and services
- Decorating the property
- Solicitor fees
- Legal fees
- Stamp Duty Land Tax
It can take a while to see the return on the property, whether this be via buy to let or if you plan to renovate and sell the property on for capital growth you must know your additional costs if you are starting a property development business.
Now, you have the tips on starting your own property development business, have a look at the JaeVee Blog for further info.