When it comes to choosing your next property, you may want to consider the potential for development, and the opportunities you can create for yourself by choosing the right home.
Especially in today’s market, this is still a solid form of making money long term, by developing your property to add value. This may come in the form of adding another bathroom (ensuite), creating more bedrooms or adding extra living space via a conservatory or extension. Either way, if this is one of your key reasonings for moving home and getting yourself onto the property ladder, you must carefully consider the development plans you have for your future property. Particularly in today’s market, there is an unprecedented need for housing development projects, so finding the right one for you might not be as simple as you might think.
What is property development?
First of all, let’s start by explaining exactly what is meant by property development. In brief, property development is the purchase of a property (or land) with the intention of adding value by renovating, refurbishing and/or extending to generate a positive return on investment. It really is that simple. When it comes to adding value through the means of extra bathrooms or adding an extension, you can live at home whilst this is happening in the background fairly easily, saving you time and money whilst the property refurb is coming along.
The biggest advantage of property development is the potential to generate significant return on your investment. However, identifying a property development opportunity that is likely to deliver the desired level of return can be extremely challenging, especially for first-time developers. Over time, property has proven to be a more stable investment when compared to other investment options. Despite it’s up and downs, the property market as a whole tends to be a lot less volatile than other markets, such as the stock market. This may be due to the fact that property takes a longer time to sell (whilst shares can be sold in a second) and the fact that property is always in demand.
But the truth is, the property development process is expensive. So you must make sure you are making the right choice when it comes to buying your next property if the sole purpose is to create a project for yourself and develop it.
One of the most appealing things about property development is that anyone can do it. You do not need any qualifications or training to get started. Anyone can become a property developer simply by buying a house then selling it on for a profit. Plus if you get it right the financial rewards can be substantial, particularly when you start to build a portfolio of renovated property that has been sold on or rented out.
To give yourself the best chance of achieving a successful property development, you would have to know the market inside-out:
- Find out how much other properties go for in the area
- Decide on who your target buyer or tenant might be
- Find out about stamp duty
Property development involves a significant amount of research and capital before you can get started, and will require a huge investment of both time and money. If you decide it is for you, then make sure to contact us today so we can guide you in the right direction for properties that suit your needs.
If you are thinking of buying or selling a home in the Gloucester area then you should be talking to us. Farr & Farr has been providing a highly efficient estate agency service since 1982 and has a reputation for quality and traditional values.
Headed by Julian Farr, one of the city’s most respected and well known faces, our family founded independent team operates from four local offices covering Gloucester and the surrounding villages.
Our experienced, knowledgeable and professional staff uphold our reputation for customer service at all times, whilst adding that personal touch to ensure your experience is as stress free as possible.