How can i become a PROPERTY DEVELOPER?!
I was thinking i could earn loaaads of money, maybe im wrong? ..but I think I would be good at buying and selling properties. Does anyone know how i could become one or whether its even a good idea?
Thanxxx :]
Thanxxx :]
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Go to auctions, buy cheap houses and refurbish them.
You'll need the start up capital obviously, maybe some of it can come from a bank loan, but I'm not sure.
Google it
You'll need the start up capital obviously, maybe some of it can come from a bank loan, but I'm not sure.
Google it
It's quite difficult, particularly in the current economic climate, especially if you don't have a great knowledge or experience of the property market or building trades.
I think people now have generally 'missed the boat' in terms of being able to snap up cheap properties and sell them on for huge profits like they have been able to do in the late 90s/early 00s. Largely because there are fewer cheap properties on the market as they are all snapped up by developers and development companies who know what they're looking for at auctions and can tend to turn over properties quite quickly. It also helps to have quite a bit of capital behind you, so that it doesn't matter if the property you renovate doesn't sell immediately you're not faced with a mortgage you can't pay. The rental market is probably a safer bet for properties at the minute as it's a bit more steady than the sales market, but the return on your investment is slower and with an unsteady housing market, you might not even get much of a return on your money. Quite a few landlords are having to raise their rents at the minute to meet their rising mortgage, and for those tied in to 12 month fixed lease, it's difficult and some are having to top-up the rent to cover the mortgage if their mortgage payments have recently gone up.
You'd also need to be a good investment in the eyes of mortgage lenders as it's becoming increasingly difficult with this whole credit crunch thing. If you wanted to rent the property out once you'd renovated it, you'd need to look in to a buy to let mortgage which is different to a regular mortgage.
It is still possible to make money from property development in the current climate, but you need to be quite savvy and really know what you're doing. I wouldn't say it's the best time for an amateur to be trying things out, as the market just isn't steady enough and people are reluctant to buy, and unless you can easily afford to keep up mortgage payments on an empty property for possibly a year or more, it could pose quite big financial risks.
Personally, I'd be keeping an eye on property auctions. If you're looking to renovate a flat somewhere more urban then you're most likely to want to attract young proffessionals, so look in areas which are up-and-coming, look at the property prices for the area (you can find these on the net) and somewhere with transport links within a reasonable distance for example. It's probably best to start with something small and try and work your way up to bigger properties the more experience you get under your belt.
Also, build a portfolio of contacts within property and the building trade if you possibly can. Often people underestimate how much work they are realistically able to take on themselves and this can lead to budgets and deadlines being exceeded. If you know friends or families with reputable tradesman skills, ask their advice and get an idea of whether they'd be willing to help, and at what cost. I think time is of the essence really, if you look at the most successful developers, they have a very quick turnover time from when they buy the property, keep renovations within a few months max and have it back on the market. You have to have a firm budget and really really work to this, as it eats in to profits otherwise and profit margins today aren't as wide as they were a few years ago when the market was still starting to boom. Also bear in mind that anything structural may require planning permission - loft conversions, extensions etc, and these can often take a long time. If a property you view is listed as having planning permission (or having it pending), ask questions and find out how long it's taken, what it's for and what limitations there are.
Personally I would hold off for a bit until the market becomes more stable, unless you can risk having money tied up in a property that you can't sell or get any profit from renting. Ask a couple of estate agents for valuations of the property before and after renovations, for both sales and lettings. Get good mortgage advice and make sure you stay in control of your finances and keep to budgets as much as you can. Go for cheap but good quality and keep properties as a 'blank canvas' as much as you can - don't be tempted to decorate to your own tastes. Neutral walls and carpets or wood flooring are much more attractive to buyers than something that is seen as trendy now, or by you. A clean white bathroom and a well laid out kitchen, and some bright accessories show people that they could move straight in to the property and keep costs minimal. Make sure the property is marketed well too. Money can still be made, and the cheaper properties on the market now are still being snapped up by investors and developers, but as a first-time buyer or developer, I would tread very carefully for the time being.
(Edit: Sorry that got a bit long! Work in an estate agency so it's rubbed off on me!)
I think people now have generally 'missed the boat' in terms of being able to snap up cheap properties and sell them on for huge profits like they have been able to do in the late 90s/early 00s. Largely because there are fewer cheap properties on the market as they are all snapped up by developers and development companies who know what they're looking for at auctions and can tend to turn over properties quite quickly. It also helps to have quite a bit of capital behind you, so that it doesn't matter if the property you renovate doesn't sell immediately you're not faced with a mortgage you can't pay. The rental market is probably a safer bet for properties at the minute as it's a bit more steady than the sales market, but the return on your investment is slower and with an unsteady housing market, you might not even get much of a return on your money. Quite a few landlords are having to raise their rents at the minute to meet their rising mortgage, and for those tied in to 12 month fixed lease, it's difficult and some are having to top-up the rent to cover the mortgage if their mortgage payments have recently gone up.
You'd also need to be a good investment in the eyes of mortgage lenders as it's becoming increasingly difficult with this whole credit crunch thing. If you wanted to rent the property out once you'd renovated it, you'd need to look in to a buy to let mortgage which is different to a regular mortgage.
It is still possible to make money from property development in the current climate, but you need to be quite savvy and really know what you're doing. I wouldn't say it's the best time for an amateur to be trying things out, as the market just isn't steady enough and people are reluctant to buy, and unless you can easily afford to keep up mortgage payments on an empty property for possibly a year or more, it could pose quite big financial risks.
Personally, I'd be keeping an eye on property auctions. If you're looking to renovate a flat somewhere more urban then you're most likely to want to attract young proffessionals, so look in areas which are up-and-coming, look at the property prices for the area (you can find these on the net) and somewhere with transport links within a reasonable distance for example. It's probably best to start with something small and try and work your way up to bigger properties the more experience you get under your belt.
Also, build a portfolio of contacts within property and the building trade if you possibly can. Often people underestimate how much work they are realistically able to take on themselves and this can lead to budgets and deadlines being exceeded. If you know friends or families with reputable tradesman skills, ask their advice and get an idea of whether they'd be willing to help, and at what cost. I think time is of the essence really, if you look at the most successful developers, they have a very quick turnover time from when they buy the property, keep renovations within a few months max and have it back on the market. You have to have a firm budget and really really work to this, as it eats in to profits otherwise and profit margins today aren't as wide as they were a few years ago when the market was still starting to boom. Also bear in mind that anything structural may require planning permission - loft conversions, extensions etc, and these can often take a long time. If a property you view is listed as having planning permission (or having it pending), ask questions and find out how long it's taken, what it's for and what limitations there are.
Personally I would hold off for a bit until the market becomes more stable, unless you can risk having money tied up in a property that you can't sell or get any profit from renting. Ask a couple of estate agents for valuations of the property before and after renovations, for both sales and lettings. Get good mortgage advice and make sure you stay in control of your finances and keep to budgets as much as you can. Go for cheap but good quality and keep properties as a 'blank canvas' as much as you can - don't be tempted to decorate to your own tastes. Neutral walls and carpets or wood flooring are much more attractive to buyers than something that is seen as trendy now, or by you. A clean white bathroom and a well laid out kitchen, and some bright accessories show people that they could move straight in to the property and keep costs minimal. Make sure the property is marketed well too. Money can still be made, and the cheaper properties on the market now are still being snapped up by investors and developers, but as a first-time buyer or developer, I would tread very carefully for the time being.
(Edit: Sorry that got a bit long! Work in an estate agency so it's rubbed off on me!)
law:portal
Property developers are not known for holding onto property, if that is what your implying.
The opposite, hold onto your cash - invest it wisely in other assets with high liquidity and then when you believe the market has hit rock bottom, buy buy buy.
Obviously, if the market continues to fall your gonna have to have some balls to hold.
You could always work as a site manager or project manager for a housing company like barrats.
If you were to buy a house, you wud need to either have enough money, or make sure you would make more than the mortgage was worth when you re-sold the house (but that is the general idea). Alternatively, you could get a buy-to-let mortgage, but if I was doing it, I would do up the house and move on.
If you were to buy a house, you wud need to either have enough money, or make sure you would make more than the mortgage was worth when you re-sold the house (but that is the general idea). Alternatively, you could get a buy-to-let mortgage, but if I was doing it, I would do up the house and move on.
you might not be interested but why not develop in america? the dollar is so weak against the pound and property prices are low in america too, all of that makes it really cheap for brits to buy there, and florida is supposed to be the new world hotspot for property, so that might be worth looking into
Apparently you should never take advice on property development from people that don't know what they are actually doing.
For too long, because of tv shows mainly like property ladder, people have been led to believe that being a property developer is the easy route to making millions.
Sorry but you're wrong. The past 10 years have seen a rising market which far exceeds anything else seen before, and arguably may not be replicated to the same extent for a very very long time.
It is this rising market, and we're talking 60% in some areas over 10 years, which has led to a good route to the millions for so many.
I'm afraid to say that most likely, it will never be that easy again. And indeed, there are many developers really really struggling at the moment who are going to find themselves in quite a predicament if house prices do fall significantly.
It isn't simply a an alternative to rent if house prices aren't high enough to sell. Because lower house prices decrease the number of people renting and more are freed up and can afford to buy.
Approach propety development in the way you people speak of it with extremem caution. That boat sailed 15 years ago.
For too long, because of tv shows mainly like property ladder, people have been led to believe that being a property developer is the easy route to making millions.
Sorry but you're wrong. The past 10 years have seen a rising market which far exceeds anything else seen before, and arguably may not be replicated to the same extent for a very very long time.
It is this rising market, and we're talking 60% in some areas over 10 years, which has led to a good route to the millions for so many.
I'm afraid to say that most likely, it will never be that easy again. And indeed, there are many developers really really struggling at the moment who are going to find themselves in quite a predicament if house prices do fall significantly.
It isn't simply a an alternative to rent if house prices aren't high enough to sell. Because lower house prices decrease the number of people renting and more are freed up and can afford to buy.
Approach propety development in the way you people speak of it with extremem caution. That boat sailed 15 years ago.
Why not read a book like "How to make a million from property" by Gary McCausland- he shows you how to make money from property in a rising AND falling market as is happening now; might possibly help you?
x
x
Hi Guys,
I am also interested in property development and want to make a real go of it. After doing some research, I came across this property development course and am thinking of taking it. I want to do it properly and its write-up sounds great and talks about everything I need to know.
Just thought i'd share this with you lot and hope it is of use to you.
Adam
I am also interested in property development and want to make a real go of it. After doing some research, I came across this property development course and am thinking of taking it. I want to do it properly and its write-up sounds great and talks about everything I need to know.
Just thought i'd share this with you lot and hope it is of use to you.
Adam
Original post by AB1893
Hi Guys,
I am also interested in property development and want to make a real go of it. After doing some research, I came across this property development course and am thinking of taking it. I want to do it properly and its write-up sounds great and talks about everything I need to know.
Just thought i'd share this with you lot and hope it is of use to you.
Adam
I am also interested in property development and want to make a real go of it. After doing some research, I came across this property development course and am thinking of taking it. I want to do it properly and its write-up sounds great and talks about everything I need to know.
Just thought i'd share this with you lot and hope it is of use to you.
Adam
At a glance it looks like a solid course and it would be very useful to a novice to have all that informatio presented to them in an orderly fashion.
However, you could self teach yourself about it all
In todays market you really have to have an advantage against others
What i'd advise is looking the areas you know well, get to know the market beforehand
Basically, do your research throughly and make sure you over budget
A good tip is to look at new student areas, like bolton, find terraced houses, renovate to 4 bedrooms and rent out. Try to do most of the work yourself to save costs
It gets easier once you own more houses
Posted from TSR Mobile
Original post by lalalee-anne
Why not read a book like "How to make a million from property" by Gary McCausland- he shows you how to make money from property in a rising AND falling market as is happening now; might possibly help you?
x
x
If reading a book was enough to make you a millionaire then everybody would do it. Approach with caution
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