Don’t be fooled by what you see on TV; property development is a lot harder than it looks. If you want to make a living by building new properties or renovating existing homes, you should know that it will take a lot of skill and planning.
This short guide will highlight some of the essential elements you will need to become a successful property developer in 2022.
A Solid Business Plan
So, you’ve decided to become a property developer. The first thing you will need to create is a solid business plan. The plan should outline your goals and how you will achieve them. Conduct a SWOT analysis, market research, work out funding and outline what is involved in each project. Writing a business plan is a complex process and one that you will need to revisit time and time again. You can learn more about writing a business plan through some online research. Remember to be specific and break down your goals as much as possible.
The Correct Insurance
If you want to give your clients peace of mind when purchasing a property from you, you should ensure that you have the right insurance cover. Building warranty is a comprehensive insurance policy that shows the buyer that the building they are purchasing from you has been constructed to a standard set by the warranty provider. If you need help sourcing the most competitive quotes and policies, contact BuildSafe. They have a wealth of experience in building warranty insurance and have worked with some of the UK’s major developers. Their team works to find the best warranty for you so you can get the cover you need. Find out more at buildsafe.co.uk.
Funding
Once you have your business plan, you will need to secure funding for your project. There are a few avenues that you can take. For example, you can apply for a loan – or apply for various mortgages. Ideally, you’ll need to have your finances in order. Start by using an online budget planner to work out your income and expenditure. This will give you a clear idea of how much money you will have leftover each month. You should always have an emergency fund, as building property is not a straightforward process. Additional problems can crop up, which require extra funding and fast. It is always better to be prepared.
Knowledge Of Local Areas
You may think this applies to people purchasing property, but it is just as crucial for a developer. You should always commit yourself to research. Look into local and surrounding areas and expand your knowledge. This will allow you to spot valuable opportunities – whilst helping you get the most for your money. If you’ve found an area that you wish to build in, research different factors like local authority rules to make sure nothing stands in the way of your project.
Think about the type of property you wish to develop. For example, if you are creating a family home, look at the key demographics for the area you are building in. Ask yourself – is this area suitable for a family home?