When becoming a property developer, it is essential that you understand what you are doing as the losses can be detrimental to your finances, however your returns can be spectacular! We have gathered the pros and cons of property development so you can decide for yourself. See information about property valuations.
How can property development work for you?
The popularity of home buying shows has led to a massive increase in property development area as a means of investing. Such shows provide a snippet of the possible outcomes when it comes to property development, however they may not always give you the full picture. Click here for property investment advice.
If you are thinking about investing money into a property, then you must understand everything that is involved.
What are the pros of joining the industry?
- You can get your creative side out and put a mark on each property you develop
- You can make a fast return by buying a cheap property
- Cut costs by doing the development yourself
- Capital Gains Tax is just 18%
- Auctions for property is one of the best ways of getting affordable houses
What are the cons of property development?
- The entire process can take some time
- You will need to work in strict budgets to make a profit
- You have to budget for unexpected costs – such as hiring a chartered surveyor
Are you ready to become a property developer?
- If you have hoped of becoming a property developer, but have been rejected by banks, then we suggest going to a private lender to receive a loan suited to you.
- A private lender will be more interested and dedicated to your project as it will be their own money that they are lending, therefore giving you a more tailored experience. If you’re looking to borrow between £100,000 and £2.5m then click here.