When entering the property development area, it should be done with the mindset that investing is all about setting yourself up, not setting yourself back.
This poses the question: what does setting yourself up entail?
Through this article and video interview, we aim to get you into a position where you can set yourself up for success as a fledgling property developer.
So: what does setting yourself up entail?
Before entering the real estate market, it is crucial to understand and evaluate what kind of property you want to invest in. Is it postcode-specific? Is it a house? Is it a unit? Is it a development?
There is a wide variety that must be considered and if you plan to develop a property, you need to consider the potential profit margins, as well as the types of properties that are ‘in demand’ in the area.
Before you begin, you must have clear goals and strategy through which your goals can be achieved. When evaluating potential properties, it is essential to have a strategy or checklist yo guide you through the process of whether that particular deal stacks up, or whether it could be too risky.
In this video, Your Mortgage managing editor Sarah Megginson chats with director of Caifu Property, Drew Evans, to learn how investors can learn about getting started in property development.
Planning to mitigate the risks is key – but if you have the right strategy, clear goals and you’re prepared to do the research to find the ideal deveopment location, then the rewards can be enormous.