Is It Possible To Remove Risk From Your Property Development?
Investments all come with risks, and the property market has its fair share of those to consider before any decisions can be made. However, it is possible to reduce risk from your property development, to protect yourself, those working for you and the development itself.
RIsk cannot be removed altogether but you can put precautions in place to ensure your losses are minimised. If you have been considering how best to minimise risk in your latest project, read on to discover just how you can go about doing so:
Team up with a reputable, knowledgeable builder
When it comes to hiring a builder, don’t shop around on the basis of cost alone. Quality is key when working in the property development field, which is why you need to look for a builder who knows what they’re doing, who you can rely on and even turn to advice when it comes to renovations and putting together your vision. They should also be able to overcome any hurdles along the way, they’ll know when to apply for planning permission, who to turn to in the event of an emergency repair and can help you correctly plan timelines for builds and work.
Look at what the big players are doing
The big property development players and land acquisition companies have got to where they are for a reason, the First Urban Group for example has curated a portfolio of developments, where sustainability is key and the local area is considered carefully. Look carefully at what companies such as this are doing and follow in their footsteps to avoid any risk of taking the wrong path.
Take time to understand the property market
You should stay up to date on property news, especially with Brexit continuing to cause confusion and caution. If buy-to-let is your main ambition, it’s very important you read up on the latest restrictions applied to this area, making decisions without understanding the implications can have a negative effect on your investments and future as a property developer. Educating yourself about the processes will significantly reduce risk; help you become knowledgeable in the financial areas and ensure you know what you are talking about when dealing with future buyers.
Work with the right estate agent
Whether you are selling the property on for potential profit or teaming up with a letting agent, ensure you select the right one and avoid risk of taking on the services of an incompetent team. A big name doesn’t always mean the best service, so speak to people in the industry and ask who they recommend.
Always ensure you are covered
The simplest of things can be forgotten, such as property developer insurance. Ensure you are covered for any house building work to ensure that should something go wrong while the builders are in you are protected financially and legally. It’s worth paying out for and is the simplest way to reduce risk.
Before you begin your next development project, check through this list and ensure you feel confident that risk is at a minimum before taking the next step.