Do you think you have what it takes to be a successful property developer?
You may have been inspired by shows like Homes Under the Hammer or maybe you just have a real passion for interior design. You could also just be looking to make some serious money. Regardless, property development is a very attractive prospect for many people. With house prices growing across the country, now may be the best time to invest your money wisely.
However, it is not something you can simply jump into – property development requires a number of fundamental personality traits and significant investment. But what exactly do you need to become a successful property developer? Read on to find out.
Time and Money
Without a significant amount of time to commit and capital to invest, you can wave your property development ambitions goodbye. You may be able to get a loan or a mortgage for a property flipping project, but that is a major financial risk and burden which may cause you distress in other areas of your life. Investing your own capital assets will ensure that you operate within your own means and will speed up the process of selling if that is your intention. You will inevitably need extra money to cover costs for when things go wrong – but making smart decisions like taking out boiler cover or getting relevant insurance will go some way in protecting you financially.
Time is as significant as money when it comes to property development. It is unlikely, as a novice developer, that you will be able to afford to hire tradesmen for every job. You will therefore need to commit a substantial amount of time to carrying out the more generic tasks yourself – painting, for example. Family and friends, particularly those with relevant skills, will be invaluable if you plan to turn around a project quickly.
To be a successful property developer you need to be made of the right stuff. Dedication, resilience and decisiveness are traits that should come to mind when considering if you have the right qualities. Developing a property is very unlikely to go completely to plan, so being calm under pressure and resilient to setbacks is an absolute must. You should also have an eye for detail and for an opportunity, both will make sure you can turn a profit at the end of the project.
You should also be commercially minded and able to see the big picture. It can be easy to be distracted by minor issues and decisions, but keeping sight of the end goal will ensure you remain on track. Whether you aim to develop a house to sell on immediately or a flat to start a property portfolio, you need to ensure that you have the skills and knowledge to complete the project.
Project management as a whole is also a vital skill that you will need. Keeping to a budget and schedule is the only way to protect the commercial viability of a property development and so you will need to develop the ability to manage the project from a distance, whilst also being at the forefront of operations.
Property development is a very enticing prospect for many people, but you need to ensure you have the appropriate skills, qualities and assets to see it from start to finish. Do you think you have what it takes?