For many people, property development is a goal in their future. There are over 25 million property developers alone in the UK, and it’s a sector that is growing while delivering reliable returns at the same time. People always want to buy houses to live in, and there are always investors looking for property to buy and rent out to tenants.
The value of property raises over time, which means that if you step into the shoes of a property developer and decide to develop property yourself, you’re going to be gaining some considerable benefits. You may have thought of everything from the architectural company you use to map out blueprints, to the construction company and whether they use laser cutting machines to be more efficient. So, you should consider all of the ways that you can get into property development and we’ve got five of them for you below:
- You can start with buying residential property to renovate or sell. It’s a good way to get a foot on the ladder in property development, and it’s the quickest way into the business. Run-down, outdated homes need some money injected to fix it up and then sell it on. The makeover that you are giving to the house is what raises the value and helps you to get it on the market again.
- You could also choose to buy commercial property and convert it to residential properties. You can change an office space into studio flats and turn stores into open homes. The lighting is often better with such huge windows, but there has to be some changes made to make it work as a residential property. Conversions of residential property are becoming more and more popular.
- Some developers choose to commission construction teams to build a second home on the same land that they already have a property. Those who go this way often start with their own personal land and grow their business from there. You can save a lot of money on a purchase of land when you do it this way.
- You can also choose to do a ground-up development, where you buy the land in a vacant block and build executive homes in their place. First timer developers will know that this is a challenging first project, but it’s got such exciting profit potential that it’s worth it!
- Buying up land to sell it on is the last way to get into the property development business. It’s a bold strategy as it comes with risk to spend a lot of money on land, but you risk not having a developer to buy it from you. Usually, if you are smart about the land that you buy, though, this is not a problem. Land is a lucrative way to develop your business, and it’s a good place to start – if a little riskier than the other options.
Property development takes time to build – why not get started with researching where you want to begin.