The idea of property development sounds great in theory.
Just buy a site, put something on it and I’m bound to cash in right?
While it would be nice, unfortunately, that’s just not the case.
While property development can be summed up by simply saying it will help to put you in a better overall financial position when it’s all said and done, it’s important to remember that the opposite can also (and more likely) be true.
Even seasoned pros, can and do, get things wrong from time to time.
When it comes to property development, there are two important notes to remember
1. Property development is not beginner friendly, and
2. It’s not fun to learn by losing a lot of money.
Most aspiring property developers start small by getting full approvals in place and then doing a basic home renovation first.
They start with just the basics like landscaping, flooring and painting and, as they get more comfortable, then move into some more in depth renovation work like kitchens and bathrooms.
These types of basic renovations teach them a lot about project and time management, job coordination and cost control.
They start small, move slowly and then work their way up from there.
While it does take time and a lot of patience, learning these skills is one of the key moving parts to an easier, more profitable development.
At the end of the day, along with real estate, finance, building and trade work (and other categories and sub categories of those industries), property development is just another category of property that is governed by the one thing that controls the majority of all industries.
The market.
Always keep these things in mind.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
