how to become a property developer
 
If you’re wondering how to become a property developer, then you’ve come to the right place. You need more than the ability to find a cheap property, do it out and sell it on. Property development requires a lot of planning. Here you can learn how to become a property developer.

6 Tips on How to Become a Property Developer

First things first, to become a property developer, you need to decide whether your plan is to buy-to-let or buy-to-sell. There are advantages to both; it just depends on what you personally want to get out of property development. 
 
If for example, your goal is to quickly increase your capital then buy-to-sell is the route for you. This short-term strategy will enable you to make a faster return on your investment. In fact, the sooner you renovate a property for a quick sale, the more profit you’ll make.
 
On the other hand, if your plan is to provide an income which can one day replace your current salary, then buy-to-let is for you. This long-term strategy allows you to build up a portfolio of rental properties, so you can achieve capital growth with the rental income from tenants. As long you have a deposit of at least 25%, you should have no problem getting a buy-to-let mortgage.
  • Consider ROI and the Rental Yield  

Whether you’re planning on undertaking a buy-to-let strategy or a buy-to-sell one, rental yield is crucial. Why? Well, even if you’re planning on selling up, you could be sitting on a property that just won’t sell. 
 
If you’re wondering what rental yield is, it’s the return that a property investor is estimated to achieve through rent on a property. To calculate rental yield, you measure the annual rental income against the property’s value. A good gross yield is considered to be 10% and, of course, this can increase if there are multiple occupants such as students. 
 
When selling properties, a 30% ROI is what you should aim for to effectively generate profits.
 
property development
  • Location, Location, Location 

The location of where you purchase your properties is the key to becoming a property developer. However, don’t make the mistake of buying in a location that’s already doing well. Instead, find a location that’s on the rise and make a healthy profit by buying early.  
  • Don’t Pay More Than You Need to  

While this may sound like common sense, you may be tempted to pay over the odds for a property in hope of selling it on for more money. However, in property development, you make more money when you buy a property than when you sell, so negotiating on the price of a property is essential. 
  • Consider Timing 

Don’t rush into buying a property. Even if you feel pressured to, it’s important that you get to know the market and the area before buying. 
 
Once you’ve found a property in the right location, that’s when you need to start acting fast. The quicker you can turn a property around, the sooner you can make a return on your investment.
  • Bear Your Buyer or Renter in Mind 

It might be tempting to create your dream property when you’re doing up houses, but it’s important not to get carried away. Always consider your target buyer or renter to ensure that you appeal to them and stay within your budget.
  • Ensure You Have Property Development Finance in Place 

As a property developer, you’ll need to be in a stable financial position. If you’re not, then it’s worth talking to property finance experts who will be able to advise you on that all-necessary finance you’ll need.
 
Now you know the all-important things to consider in order to become a property developer, why not help yourself achieve your goals by enrolling onto one of our property development courses? You’ll learn a range of skills, as well as everything you need to know to start a career as a property developer. 
 
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Star of property program Relocation, Relocation, Phil Spencer has advised property developers and those considering property development courses to think very carefully when considering how to invest in their projects. He stated in The Times that there are adaptations property developers can make which will add over 9% to the value of a property. If you are considering attending one of Access Training’s property development courses, then this should come as excellent news. Upon completion of our property development course, you will be in a position to reap the rewards of your hard labour when it comes to selling your home and moving on. 

Adding value to a project is the bottom line for all graduates of property development courses; Spencer explained the most effective way of achieving this was with a kitchen, bathroom or garden refurbishment. The tutors at Access Training’s property development courses whole heartedly agree with this point and teach their students how to carry out such refurbishments to the most exacting of standards.

Those of you considering undertaking property development courses should firstly note Phil’s comments:  “If you are only going to improve one room, make it the kitchen. This has now become the showpiece area of the home. We don’t just cook in it; we do homework, watch television and hold dinner parties in it too. The number one priority is creating a handsome and efficient work surface, ensuring easy access between the three points of the kitchen triangle, namely the sink, fridge and cooker.

“You should also ensure the equipment you install is as up to date as possible, so it won’t look outdated in 10 years. Property development courses teach individuals to ensure the price bracket of your kitchen matches the price bracket of your home. There is no point putting a £25,000 kitchen in a £250,000 house; you won’t see a return on investment. Equally a £10,000 kitchen in a £1 million house will only drag down the value. Typically, a new kitchen will add 4.6 per cent onto the value of your home.”

Phil also offered some valuable advice as to how best refurbish your bathroom: “The secret is to keep things simple. You don’t need to do a lot with the room; it’s all about the features you put in. You should think about a set of new taps (£20), a heated chrome towel rail (£50), a big shower head (£20), a power shower (£250-£750) and a glass screen (£100) or glass door (£125) instead of a shower curtain. A new bathroom puts 2.88 per cent onto the house value.”

The third area that Phil said that graduates of property development courses should concentrate on is the garden: “Make it accessible and enjoyable from the house; glass doors are a good idea, as is outdoor lighting. View the garden as another room; install decking (£250 up to £5,000) and you can add two per cent to the house value.”

If you are considering property development and are looking for all encompassing property development courses, Access Training can offer you property development courses which will teach you the trade skills needed to add real value to your property at a fraction of the cost. Take a look at our bathroom fitting courses, kitchen fitting courses for more details. Alternatively call us now and we’ll answer all you questions.