1. Look at Residential and Commerical Property Development
Residential and commercial property development are two very different things. If you’re looking to flip homes for a profit, you’re going to need a whole different skill set and knowledge compared to commercial development! Make sure you know which area you want to get into before you start your research so you can hone your skills.
2. Don’t Start Without a Plan
To fail to plan is to plan to fail, as the old saying goes!
Creating a plan is a must when getting into property development, looking at the big picture and making sure you’re ready to start. Look at your goals – both short term and long term -, how you’ll get there, and what could go wrong along the way. Make sure your finances are in order, you know what kind of property you need to flip to meet your goals, and how you’ll manage your risks.
3. Know Your Finances
Money is a huge part of property development and making sure you know the ins and outs of your accounts is a must. Learn about all of the fees when buying and selling homes, find out about a possible super deduction with a capital allowance tax claim, and make sure you do everything by the book. If you’re confused, hire an accountant to help you, even just for a meeting where they can explain what you need to know and why.
4. Always Go With Your Head
When it comes to property speculation, it’s always head over heart. You have to control your emotions when making decisions and go with what you know rather than what you might or even be afraid to do, basing your choices on knowledge. For example, you may have the opportunity to develop a home in an area that means a lot to you, but if you know it’s not a good area to develop in you have to let it go.
5. Be Thorough When You Buy
When you find a property, make sure you know why the vendor is selling it, what the location is like (whether values are likely to rise), and whether it’s an appealing place to live. Never buy a property without the proper inspections, even if they’re pressuring you to put down money! Always be certain you know as much as you can about a property before you buy it and if you don’t feel comfortable, don’t invest.
Start Your Property Development Journey
Property development is a great way to grow your money, and it can be really fun too! But, remember the kind of money you could lose and always do your research; it’s far better to be safe than sorry.
If you enjoyed this article, be sure to check out more property tips and news on our website!
Leave a Comment