8 Mistakes To Avoid As A Property Developer
Whether you're first starting out, or have a highly established portfolio behind you we can all make mistakes.
But, in the world of property development, mistakes can be costly and even life changing.
Here are 8 mistakes to avoid as a property developer.
The first and possibly the most important mistake to avoid as a property developer, is buying in the wrong area. You could be stuck with a house that you’ve put your heart and soul into renovating and it doesn’t sell leaving you out of pocket.
Make sure you research it thoroughly and look out for things like, busy roads, distance to local amenities and most of all the demand in the area. Are houses sitting empty for a long time? This will help you avoid making the mistake of buying in the wrong area.
Money, Money, Money
It can be easy to get carried away with the purchase of the house, and then your planned renovations. You may think you need to borrow more money than you think. Be reasonable with your budget and avoid making the mistake as a property developer of borrowing more money than you need or can afford. Shop around for mortgages and do not accept the first offer that comes your way.
Unless you are very handy with DIY, chances are you are going to have to enlist the help of some tradesmen. Do not make the mistake of using a company just because they are cheap as they may leave you high and dry, research their reputation and only use trusted workmen.
It can be tempting to use budget friendly fittings and fixtures to save cost, but it is a mistake that many a property developer has learnt from. Chances are they will need to be replaced early on. Invest in items that are functional and made from quality materials, do not cut corners is one of the 8 mistakes to avoid as a property developer.
Over The Top
Try not to release your inner changing rooms and go too over the top when developing a property. It really shouldn’t be your personal taste, bit clean, simple and modern to appeal to the many and not just you. Now, put down those purple velvet curtains. The exterior needs to look as good as the interior to a potential buyer.
Buyers don’t want a property with lots of small bedrooms, don’t make the mistake of packing a property with bedrooms. Instead focus on living space and the flow of the property.
One of the most common mistakes a property developer can make is that they do not have the correct paperwork filled out, the planning permission obtained or they may overlook a vital form. Enrol the help of a professional to guide you through the process if you are unsure or risk making a costly mistake.
Don’t Get Greedy
You’ve spent your hard earned time, and money and in your eyes made the property into something that is worth a million pounds. But, it doesn’t mean it is actually worth that estimation. Do not get greedy on the sale and make sure you are being realistic with the sale price. Timing is everything so listen to the experts or have your property development dream sit empty for a period of time.
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