Have you ever been tempted to buy a property, re-design it and sell it for a huge amount of profit?
Yes, we’ve all been there, got the t-shirt and realized that in fact, its not as simple as it sounds nor appears. Consider these 5 most common mistakes made by property developers and how the can be avoided.
- Don't buy a property in the wrong area - Try to avoid properties that are situated on or off main roads, and those within areas which have poor transport links. If the property isn't situated within a nice area, then why will anyone want to spend a fortune to live there?
- Avoid paying costly rates for finance - One of the dangers for property developers is borrowing more than they can afford. Don't fall into this trap! Shop around for the best possible deal before making a decision.
- Avoid buying cheap materials - However tempting it may be, potential buyers will notice if you buy cheap materials, they will be looking for a good quality finish.
- Don't get personal - Although you may have nice taste when it comes to property development, don't inflict this on the buyer. Let buyers project their own ideas by keeping rooms neutral as possible.
- Be careful and do your homework - Look into potential builders work and request for references from previous clients. Make sure they sign a fixed price contract to avoid escalating costs if the builder continues a job longer than you have already agreed. It is also worth speaking to the local planning office before you buy, if you’re planning to expand, or make significant changes.
If you’d like help in designing your new home, or renovation project then feel free to contact Arc Design Services for advice.