In this article we’ll take a look at what you (with UKDLP’s help) can do to become a property developer. Property development is an excellent way to make effective use of a cash lump sum. You can earn a far higher return on your money than you would if you invested it in a bank. However, there are many potential pitfalls in this industry that can seriously jeopardise your success. These include legal hurdles, practical issues, budget management and much more besides. So, what can you do to best insulate yourself from these problems?
Ok, you were probably expecting me to say this one, but taking an online course is a great first step for anyone who wants to become a property developer. UK Distance Learning’s course teaches students a variety of things that they would otherwise have to discover ‘on the hoof’. This includes stuff like how to raise finances, different regulations and laws you need to abide by, how to target particular areas for development and so on. It’s a damn sight cheaper to buy a course and learn these things up front, than to go into a new development without the underpinning knowledge required, and end up making dozens of costly mistakes.
Property Development Courses
Our Level 3 course is intended for individuals who are new to property development, and for professionals in the trade who simply want to go over the basics. This course allows you to study at your own pace, and is designed to develop an interest and understanding of property development, both on a business and personal level.
Our Level 4 Advanced Property Development course is a more challenging and in-depth version of the Level 3 course, designed not only to provide a clear and concise understanding of the nature of property development, of what is involved and how to undertake a successful project, but also to add your own experiences to the learning process. In this way, our Advanced course will give you a considerable range of advanced skills to become a first class Property Development Manager.
You can do all the planning in the world, but as a property developer you will always be subject to the influence of factors beyond your control. That’s why it is always important that, before investing in a property, you have a backup plan. So, for example, if you buy a house with the intention of performing a quick turnaround — doing it up and selling it on for a profit — you should factor in any potential problems, and have a plan for dealing with them. It may be that you discover a major problem, like subsidence, or rising damp, that wasn’t known about before purchase. This would vastly extend the period required to turn the house over, and mean your budget would go up. A good property developer would have planned for this, and set aside a contingency fund. Another example might be if you bought a property intending to sell it on, but then house prices took a nosedive. A good property developer would have planned for this, and anticipated that they might need to let the property for a period while the market recovered.
This will seem like an obvious one, but it’s amazing how many people don’t factor it in. If you want to become a property developer, rigorous budgeting is your greatest tool, and without it you will be doomed to failure. It can be extremely tempting, especially for those who are new to property development, to treat each new property as if it were going to be their own home. You cannot afford to do this. Of course you want the property you are renovating to be smart and up to spec, but there is advantage to gained by blowing your budget on costly cosmetic improvements. Indeed, the chances are that a new buyer will probably redecorate anyway. Your budget should reflect your priorities, and as a developer these should always be the essentials: plumbing, electrics, damp, weatherproofing, insulation, heating. These are not especially glamorous, but they are the things that can most damage a property’s value if they are not up the highest standard. In terms of decoration, you should be aiming for light, open spaces, preferably decorated in neutral colours. This gives potential buyers the maximum freedom to imagine the home they want, not the one you want.
Locations, location, location. It’s not just an irritating bit of daytime TV presented by vacuous, somewhat irritating estate agents. It is also a vital component of property development. If you want to become a property developer, you will have to learn what makes a good location. Location is the number one factor in determining a property’s value, and its potential value. There is no exact science to working out which areas are going to be the next ones to have a spike in property values, but there are certain indicators that you can learn to look out for. For example, if a large company is planning to relocate to an area in a few years time, this can boost prices because of a rise in demand for worker’s accommodations. Alternatively, if an area is due to receive a government grant for renovation, as happened with the Liverpool dock area, or with Gateshead quayside, this can raise property prices as the area attracts more tourism.