Updated: Apr 17, 2018
Just like any other endeavor, you have to start somewhere. Property Development is basically a process; a wide range of activities not limited to building and construction. For the past 20 years, the industry has been incredibly profitable for many investors because of how much money it can generate. It is also a way to be creative. However, it also requires the right mindset and the right amount of management skills to make it work because it is not as easy as 1,2,3. Before getting into this industry, you need to make sure you understand a few important things.
Property Development works incredibly well if you do it right. It also can go wrong quickly. One of the few things that you need to consider is your local market. Understanding this aspect well is essential in this industry. You need to make sure that you can deliver to your local market the kind of refurbished property they will take interest in and even want to buy. Developing a property in an area where there are no potential buyers would only defeat the purpose of what this industry is about. You don’t just buy and develop. For this reason, a feasibility study is in order.
Educate yourself about the industry. Read books about Property Development. Start with the easy ones, and then If you need to take a course to better understand them, then do it. Information online is massive and readily available. A mentor or someone who could help you with learning about the industry is also important – someone who is actively working in the field. An educator can only do so much. And it’s really not the same as being in the field and seeing all the action for yourself.
But of course, nothing beats real-life experience. Start with a small project like a renovation job. A small project would require you to apply what you have learned so far – all the fundamentals of property development. You cannot expect to rake in millions out of a small project, but it will teach you valuable things. Buying or selling an apartment is also another project you can get into.
Lastly, you will need to surround yourself with people you can trust. For every project, you would obviously need a partner or a team to operate a successful business. You would also need consultants such as lawyers, architects, engineers, artists, and brokers. Doing everything by yourself is impossible. You always have to remember that there is no shortcut to anything. A lot of hard work and patience are needed for you to see the results you want. Not just in this career, but also in life.