These days many people are trying to get into the property market. Land and property value seems to keep climbing around the world, property shows are huge, Home & Garden shops and magazines are popular, and everyone seems to want a taste of entrepreneurialism. However, property development is difficult, costly, time consuming, and risky. Here are some tips on how to negate those factors and begin the property game.
Venture Partners – To develop property you’re going to need money, and quite possibly a lot of it. A way to ensure financial stability is to take on a venture partner. If you’re a first time developer then you should look into an existing property development business. They have been doing this for years, they have the financial stability and they give examples of previous developments. Partnering with a property development business may reduce your autonomy and it may cost but it’s the safe route for a first time developer, and it is a way of getting into the development game.
Location – I could’ve written it three times, but that’s too predictable. Buying in a market that is quickly growing is also very predictable. If people are already aware that the market is shooting up then they’re aware that they can charge you an arm and a leg for the property. It’s not necessarily a bad decision, but not researching is definitely a bad decision. There are areas that research can reveal to be approaching a growth in the market. Buy before the boom, not after.
Buy to rent or buy to sell – Are you buying property that will be developed into a rental, or will it be developed to sell? One is a long term investment while the other has a faster turnaround and therefore a faster…