Building up a property can be a rewarding and profitable experience. However, do it wrong and it can be tedious and money burning. Our team have put together some top tips to avoid potential development mistakes.
Avoid buying unsuitable land
If you’re developing something for yourself, a place that you will live in or possible your dream home then what you buy can be entirely guided by your own preferences. But if you’re planning on developing, then you need to ensure the land has decent investment prospects. This means you need to get in touch with the local council and do some research on what the council’s restrictions are and what the future holds for that area.
Don’t underestimate the time & money required.
Take the time to understand the costs and timelines of your development journey. You want to make sure that you’re not caught short of cash at the eleventh hour. Check all the figures and timelines before making commitments so you’re able to allow yourself a cash cushion for peace of mind. Keep in mind that any changes made along the journey can be an additional charge so try to avoid them where necessary.
Don’t over-leverage your finances.
At the end of the day, you know your finances, your budget and its limitations better than anyone else. A lender, in theory, should be able to identify if you’re over stretching your finances but when push comes to shove, if they don’t pick up on it you’re going to be the one that suffers financially. After you identify all the costs and time required, revisit your budget to see if the project is going to be possible.
More land doesn’t mean a greater return
When it comes to the land size, don’t just look for the biggest assuming you’ll be able to squeeze more houses onto it. The local council may not approve the type of development you imagine. Developments by Impressions can help you in find the right property development to suit your needs and budget.
If you want to break into the property investment market or if you’re ready to move onto your next venture, get in touch with Developments by Impressions and we’ll ensure you avoid potential property development mistakes