Before we delve into the tips and tricks on how to get a start of how development sites work, it is important to begin with the basics. Who is a property developer? Well, a property developer develops sites from the start till the end that are dedicated to properties of commercial or residential nature. Also, developers are involved in various equity financing deals along with managing projects with various other professionals such as architects, council agents etc.
The field of property development is a very exciting one if you are the kind of person who loves a challenge, can read the market trends, has financial backing and can handle some stress along the way.
How to get a start?
Education is the key to all
The first and foremost aspect is education. You must first educate yourself about developing properties. There are many ways in which you can accomplish this task. A number of successful property developers have written various books on the topic that you can read.
Also, you can directly talk to various developers yourself so that you can get an ever clearer idea of how things work and function. In fact, this is highly recommended if you are completely new to the field; since in this way you can directly share the experiences of other property developers and how they climbed the ladder of success.
The finance dilemma
The next comes money. You can go to a bank to borrow. However, banks do not offer a healthy amount of money when it comes to property development. They might lend 70% of the value of the land and that of the construction costs. So make sure you have enough money in your pocket to bear the expenditures that you may incur.
Choosing a development site
Once you are through with the finances and know how to put your plans to action, you can go out searching for a perfect development site. There are many considerations that you need to take in this part.
First of all, you should make yourself aware of the demand for rental and buying properties. You should know the economic conditions of the suburb along with the income levels of the people living in it. You might also want to know what will be the population growth rate of the suburb. Overall, you need to take into account the market conditions in terms of similar properties out there for rent or sale.
The site that you are going to choose must also be situated in an area that is suitable and attractive to buyers and people who want to rent it. You cannot have a residential property in an unclean, noisy location that has drainage issues.
Some important tips
Never choose a site in an expensive area such as the city in the beginning. Start from a site that is affordable and offers value and promise.
"Once you are through with the finances and know how to put your plans to action, you can go out searching for a perfect development site."