How to Become a Successful Property Developer

13th June 2017

The key to becoming a successful property developer…

There are several key points to be aware of when considering property development.

Firstly, watching and being aware of the market you are buying into. Consider the location, this being the most important factor in any house development endeavour. Researching the local market in the area and investigating the area thoroughly before any potential purchase.

Good access to green spaces, access to transport and schools is a must, though being in the most aesthetic area is not, some of the most successful developers in fact nearly always buy in areas deemed to be the worst location.

Driving around the local area looking for derelict or unused properties is a useful way to find the ideal location for your redevelopment.

Buying a cheaper property at auction saving on the initial cost of the property will yield a higher turn around for your profit margin. Though you must set a carefully worked out limit to the purchase cost and not exceed this. In addition to this it is important to not pay over the odds for a property thinking you will get it back later. Any costs initially outlaid on the purchase of your property will eat into the profit and will be at the mercy of the market. If the area you have purchased in suddenly drops you may be out of pocket drastically.

Developing a rapport with a construction company and architectural designer (like Detailed Planning!) will create a consistency in your development projects and allow you to build a good client relationship. This way you can be assured of the quality of the work and that the time frames will be adhered to. You can opt for the designer to oversee the development process so that everything can run smoother.

Beware before entering into your project that you are at the whim of the market. To start the build you must be financially stable and note that you may not always sell the property immediately. If you have not bought the property outright this may leave you in the position of paying a mortgage on 2 properties for a prolonged period of time. This is a pitfall that many first time developers fall into, especially if elements of the market change during the period of your build.

When selling a property that has been redeveloped for resell purposes, the seller will be charged 28% capital gains tax on the sale of the property for those in the 40% tax earner bracket. A way to negate this tax would be to if possible to live in the property for a period of 6 months. If the property is sold as a one off business transaction the seller would be liable for income tax, rather than the capital gains tax, which could potentially leave you the seller paying less tax on the sale of your newly developed property. Though it would be of use to find a good accountant to assist you throughout the development phase through to the sale of your project.

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We have used Detailed Planning to help design and obtain planning for our single story extension converting our one... bedroom flat to a two bed. We have found them to be extremely helpful, communicating the process and how things work throughout. We were particularly happy with their ability to negotiate our extension depth with the planning office, resulting in 3.5 metres instead of the permitted 3m, which was crucial for our space to work. We look forward to working with them for the rest of the project.read more
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Mel D
Mel D
21:03 13 May 20
Paul & Emily are fantastic, they have done everything from start to finish for our planning permission and technical... drawings and the quality of their work is very high (I guess it is in the name - detailed!) They have been patient with all our design changes, provided lots of advice, walked us through the process of who to engage with, when etc. and were always responsive and helpful when we have questions both via email and phone. This is our first major project and we are doing a loft conversion and remodelling the entire house so to have this support has been invaluable and well worth the money. We actually found them on trust a trader and obtained a few other quotes, DP was the most reasonable price wise, had the right qualifications, good reviews and a big plus was their well evidenced portfolio of work & experience in the area. It was a no brainier and they really have delivered beyond our expectations, most things have also been done via emails and zoom calls so the flexibility was there which really worked for us, would recommend them to anyone!read more
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Detailed Planning were recommended to me by a friend. Right from their initial visit and all the way through to the... finished plans, they were very good and we could not have asked for better service. Paul and Emily were always very good in their work they answered every query we had and solved every issue that we encountered during the planning They work extremely well with their recommended engineer, surveyor and building control company to deliver a very good package. Thank you Paul, Emily for your excellent work, We can't wait for our extension to be completed.read more
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The service provided by Detailed Planning was exceptional, with fast response times and excellent communication... throughout the project. We would definitely recommend Detailed Planning and look forward to working with Paul and the team again in the future.read more
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18:55 20 Jun 19
Detailed Planning were recommended to me by a friend. We found their prices very reasonable so instructed them to draw... up plans for our extension. Right from their initial visit and all the way through to the finished plans we could not have asked for better service. Paul and Emily were always very easy to get hold of, which I'm told is not the case for all architects. They answered every query we had and solved every issue that we encountered during the planning and party wall agreements with minimal fuss and in good time. They even sorted our build over agreement for our manhole to be moved. They work extremely well with their recommended engineer, surveyor and building control company to deliver a very good package. Thank you Paul, Emily and everyone at Detailed Planning. We can't wait for our extension to be completed.read more
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