Updated: May 15, 2019
Have you always wondered if property development is a career you can actually get into but you have reservations? The reason why you feel that way is because you lack the right information about the industry. So, before anything else, do your research. From there you can decide whether it’s going to work for you. As a property developer, what I can do is to help you figure out if it is actually for you.
For those who are not aware of what a property developer does, it involves a few things—buying property, developing the property by renovating it and then selling it or have it rented for profit. Many times, property developers choose to buy a property that is cheap and then has it improved with repairs and furnishings. The idea is to make money off of it so you have to be sure you’ll get so much more than you have invested in. Sounds like something you’d be interested to take on? Not so fast! Here are some ways to find out if this industry is actually for you.
Property development is incredibly appealing to many because anyone can actually do it. Becoming a property developer has perks but it is not a cheap business. It is quite expensive to be perfectly honest. You will have to be financially stable to at least enter this industry, which means you have either saved enough to start or you would need to borrow some. If you are willing to do the latter and are willing to take the risk, that is one step to finding out that this could be fit for you.
Some loans you can actually get to finance your business are as follows:
- Bridging Loans
- Residential and Commercial Mortgages
- Secure and Unsecured
- Buy to let mortgages
This is a topic for a different blog but I also mentioned just so you have an idea. You should also remember that there are unexpected extra expenses that you should prepare for.
An Eye for What Sells
Just as I have mentioned, property development is about buying property to develop and make a profit from. But everything begins with an idea. First and foremost, it’s important that you know what will sell. Property developers are the ones who choose which property they are willing to invest in and improve, so creativity is a trait that they should have. Without some creativity in their bones, it’s difficult to visualize the end result of a property you want to develop. Creativity is the reason why we have a wide variety of infrastructure because someone has a vision and is willing to make it happen. This includes the ability to spot the potential of a location or a project.
Willingness to Take Risks
Most people who venture into the real estate industry already know that there are incredible risks involved. It may or may not work—because there is really no guarantee that your efforts will pay off the way you expect it to. You can tell that you are cut out for the business if you have enough guts to embrace the uncertainty and take all the risks. It is not for everyone but for those who have the talent find ways to make it work.
Willingness to Do Educate Yourself
Property development will require a lot of time for you to do research. Interest is one thing, but willingness is a whole other bag. You really would need to put the work in if you want to do this because it’s going to be a long journey ahead. Work involves time to study the market and what the industry is all about. Educating yourself would also need for you to surround yourself with the right people who can help you make your dreams come true.