What do I need to start a new Property Development Project?

To become a property developer, you need to do extensive research and factor in many different things. Our six steps to success are below:

• Creating a business plan: set out in detail what you would like to do with your business (Target market, Property types, Timescales, Costs)
• Buy-to-let vs buy-to-sell: Buy-to-let may take continued maintenance but offers a long-term income stream and buy-to-sell is a much quicker way to build a property portfolio, but involves more work at once. You can always shift from one model to the other.
• Market research: location, location, location! Transport links and things to do around the area are vital, especially if looking to rent to students. If looking to sell, use less conventional methods such as auctions as they are a good way of finding real value. Find out what is selling, for what amount and what the buyers are looking for.
• Calculating ROI/Rental yield: although they are not too different, calculations must be done to ensure you are maximising your profits and reducing costs. This will give you an idea of the financial viability of your plans.
• Renovating for sale or rent: The quicker you can fix a property, the quicker you can resell it, or rent it, but careful of poor-quality finishes as people can be put off. Consider your target market.
• Financing your property development: your possible options include Cash, a Buy-to-Let or Buy-to-Sell Mortgage, Bridging Loans, Personal Loans or Property Development Finance. Whichever you chose to apply for, ASC is available to help.

As starting any business, property development takes time, money and effort, and should not be seen as a quick way to make profit. It can take a long time to make a profit. ASC is available to help secure finance for your next property development project, we have been doing it for 50 years. Get in touch with your local ASC office today for more information.