Property development is something that we often hear about, we know people who do it, people who have tried it, and maybe people who do a bit of it. In reality, if you want to develop some property, you need to do a lot of work and consider a number of different things. It is often perceived as a way to create some cash quickly but it is more demanding than just finding cheap properties, renovating and selling for a profit. The good news is that if you want to start out, the barriers to entry are fairly low and many developers still hold a full-time job until it is profitable enough to live on.
We have outlined our six steps to success:
Creating a business plan: set out in detail what you would like to do with your business (Target market, Property types, Timescales, Costs)
Buy-to-let vs buy-to-sell: Buy-to-Let may take continued maintenance but offers a long-term income stream and buy-to-sell is a much quicker way to build a property portfolio but involves more work at once. You can always shift from one model to the other.
Market research: location, location, location! Transport links and things to do around the area are vital, especially if you are looking to rent to students. If you are looking to sell, use less conventional methods such as auctions as they are a good way of finding real value. Find out what is selling, for what amount and what the buyers are looking for.
Calculating ROI/Rental yield: calculations must be done to ensure you are maximising your profits and reducing costs. This will give you an idea of the financial viability of your plans.
Renovating for sale or rent: the quicker you can fix a property, the quicker you can resell it, or rent it, but be careful of poor-quality finishes as people can be put off. Consider your target market.
Financing your property development: your possible options include Cash, a Buy-to-Let or Buy-to-Sell Mortgage, Bridging Loans, Personal Loans or Property Development Finance. Whichever you chose to apply for, ASC is available to help.
The process of development finance can be tricky, but having a broker can significantly increase your chances of success in securing commercial finance. ASC can always make it easier for you by simplifying the steps and tailoring your application depending on the type of finance required.
ASC commented that “Securing the right finance for your development project is time consuming and it is so important to get it right. A good broker will make sure that your application is presented to lenders in the right way to make it happen and increase your chances of approval.”
ENDS
For further information please contact:
ASC Finance for Business
Tel: 020 7616 6628
Notes to editors:
About ASC Finance for Business
Established over 50 years ago, we are independent business finance brokers. We help ambitious and hardworking business owners throughout the UK to obtain commercial, business and property finance. As commercial finance brokers our focus is purely on securing finance for small businesses leaving them free to focus on and develop their business.
