Property business is widely ranged into different branches and categories. One of them is property development all is also called real estate development. This is business process involving necessary activities such as renovation, re-lease the existing buildings, or buy raw land in order to sell it to gain more profit later on. In these activities, the one who is responsible is called as property developer. They can work in person or in team. If the business grows well, there is possibility to start building real property development company.
However, it is also common for people to mistaken property development as construction because it’s not the main idea of this term. Property developers do the process of construction but it is not the main activity and only part of various processes within. You must be curious of why choose this path of career in property business. Well, here are some reasons on why this business is promising:
- The main goal of this business is to get money. However, this business is also a way for you to save money. Since your project could cost 20% below the market and the profit is promising.
- You will get better return for the rental and this is good news because then you will be able to to pay the mortgage.
- This is a better choice if you aim for easier finance since it provides better leverage.
- The tax benefit of this business is great especially from new property.
What to do in property development?
If you have decided that this business is promising to get you better future, then you need to figure out next actions to take. Here are some tips for your easier starter:
- You will need to talk and ask for help from important people. You can call as team member. Those are real estate broker, finance planner, lawyers, accountants, architects, engineer, building contractors, marketing planner, project manager, and construction manager. Those are absolute members you will need to run this business.
- Make a clear finance limit so you know exactly how much you can afford to invest in development project. You need also find a way to get your finance. You may need to contact banks or lenders.
- Next step is to find ideal property. To get this right, location is always the first priority. The better the location, the greater the profit you could get. You need to set your target as well. For example, you set family as your target so you will consider building more bedrooms to accommodate their needs.
- The next step is the most challenging because you will get to the real action started from purchasing the property to completion of the development process. This requires many steps but if you do them right then you won’t face any hassle.
The next step of doing property development is to decide your completed development property either to sell it to get higher profit or hold it on as your investment.