Building a business is one of the most rewarding yet challenging experiences a person could have. I was always fascinated with creating something, so when the time came that I had nothing going on and no one to hold me back, I began exploring the possibility of becoming involved in building and construction.
I have mentioned in the past that my family was very much involved in the building industry, but I didn’t think that I would even be interested in it until the opportunity actually presented itself. Investing was always in my mind, but I had to make a firm decision to do understand what this career entails and requires. Not just because you think you can build something doesn’t mean you are automatically a builder. In the same way, just because you invested in something doesn’t mean that it’s all there is.
Starting a career in the real estate industry is quite simple, but the tricky part here is choosing which way to go. Is the role of becoming an investor or developer the right one for you? Let us find out.
The thing about property investors is that they usually build one dwelling on single survey strata (a lot defined by boundary pegs placed by a licensed land surveyor) or a green title block. Property investors normally look at a longer-term commitment of 5-10 years, mainly for wealth or minimization of their taxes. They are also about property increasing in value, at the same time functions as a rental to maximise rental yield. The challenge is actually choosing the location where the property will be built because the design and the location are very crucial in making the investment successful.
It is also important that property investors work with professional consultants to get more ideas for a more lucrative investment.
A property developer, contrary to a property investor, takes a parcel of land and builds multiple dwellings or properties on the same lot. A developer would normally try to get as many dwellings as permissible to maximise the ROI. These properties are designed, mainly to sell to homeowners and investors. Developers must also keep in mind that buildings must depend on zoning restrictions, and without professional guidance so many things could go wrong.
Real estate is such a tough business. There are so many things to take into consideration – not to mention, really competitive. At the end of the day, it’s about the mindset. Having the right mindset makes everything possible. Resourcefulness is such an important quality, as well as independence and confidence. Plus, always know the facts and learn as much as you can about the business.