Tips for Becoming a Successful Property Developer
If you wish to become a property developer and want realty to be your field, you need to get yourself acquainted with the basics. Real estate property development is great way of making money. But to be a good real estate agent and developer you need to consider a number of factors.
1. Educate Yourself
The first step is to know why you want to get involved in development. The best ways to learn about developing property are to read about it in magazines or newspapers, take a course (or two) and very importantly, speak to successful property developers and their success stories.
2. Where to Buy Land
It’s very risky to be a trend-setter in property development, especially if you are new to the real estate business. The safest way is to develop where others have already built houses. This will ensure you stay on the guarded side.
3. Council & Documentation
Before purchasing land and developing property , you need to seek permission from the local development authority. Become familiar with their rules and regulations, it’s very important.
Borrowing money to finance a development is a lot different from borrowing money to buy and hold an investment property . When it comes to development, the bank will lend you approximately 70% of the value of the land and 70% of the value of the construction costs. But the interest rate is usually 1-2% higher than normal home loans.
5. Don’t Give Up
If all of this seems too hard and complicated, don’t give up. As a beginner, you may want to seek help from a town planner. He will deal with the council and documentation stuff for you – which is probably the most difficult part of development process.