Junaid Iqbal Memon Shares How to Become A Property Developer

06:11

How to become a property developer In 6 simple steps

Hailing from a family of business-oriented individuals, Junaid has drawn towards entrepreneurship and business very early on and with his understanding and interest in entrepreneurship piqued at a very young age, he has made this as his driving force towards carving a path of his very own in ventures focused on real estate and property development, and the founding of the Cloud 9 Group in 2014. In this post, we'll talk about how to become a property developer In 6 simple steps

1. Develop a property development business plan

Writing your property development business plan is an essential part of setting up a development company and will form the foundation of your company. By writing the property development business plan you will go through the process of analysing your entire development strategy and you will have to give thought to the entire development process.

If you are a beginner to property development, the process of writing the property development business plan will provide more questions than you can provide answers, which is a good thing for you to start your development career.

2. Buy-to-let or buy and sell
Buy-to-let investment is very different from owning your own home. Keep in mind that a mortgage comes with risks – if you need to sell the property for a loss, the sale price might not cover all that you owe on the mortgage. You would need to make up the difference. Also remember, that if your tenants leave and there is no rent coming in, you still need to make your mortgage repayments. So it’s all the more important to find out everything you can before you commit to a property and a mortgage.

3. Always consider the rental yield and return-on-investment
If you’re planning on a buy-to-let strategy, the rental yield is essential, but even if you’re hoping to sell you have to be prepared for a volatile market and in a recession, you could get stuck with a property you can’t shift. Yield comes from the rental money received from tenants. It's the rent a property could provide over a year, expressed as a percentage of its purchase price.

Top tip: Although the gross rental yield is a simple calculation, it’s important to remember that it doesn’t take other factors, such as expenses, interest rates or periods of vacancy, into account. For example, a property may have a high rental yield but may also have high maintenance costs, which may make the rental return low when taken into consideration.

4. Location, location, location
Arguably one of the most overused phrases in property development – but it really is all about the location. Look for areas of growth and gentrification where other developments are taking place or are planned.

5. Timing is crucial
It’s important you don’t rush into buying a property. It can be easy to get swept away by estate agents who insist you’ll be missing out on the best deal even if you don’t buy ‘x’ immediately but you need to spend adequate time getting to know the market and area. However, once you have found a suitable property in the right location, it pays to move quickly

6. Tailor your developments for your buyers (or renters)

It’s essential to tailor your development to the demand in the area you’re buying in (a key issue to address in your business plan). Is the local market students for families? Is it worth creating a very high-spec property or will simple fittings be more suitable? It’s all too easy to go over budget creating your dream property but you need to keep a tight grasp on your finances with your target buyer or renter constantly in mind.

Junaid Iqbal Memon is property development expert. Our services are aimed at professionals in the property development industry. You can learn more by reading about Junaid Iqbal mohammed Memon online. Read about our founder on the Junaid Iqbal mohammed Memon profile page. You can also follow the Junaid Iqbal mohammed Memon on Facebook

You Might Also Like

3 comments