Jul 20, 2018
Property development can appear to be a really attractive way of making money - you buy a property, do it up and sell it on for more money than you bought it for and more money than it cost to do up. It combines business acumen with an eye for design, as well as letting you get hands-on with the improvements. However, it is also hard work and can be difficult to get right, so if you are thinking of getting into property development in Europe, be sure to follow these tips.
Buy-to-let or buy and sell?
You have a choice to make when it comes to what you will be doing with the properties once you do them up. If you decide to let them then you will be making a steady supply of money every month from the rent paid to you by your tenants. If you decide to buy and sell, then you are looking to make a large amount of money as quickly as possible. Whichever one you decide to do will affect the type and location of the house you buy.
Think about the location
There are so many beautiful European countries, cities and areas to buy in, so make sure that you research the continent thoroughly before deciding on a purchase location.
It might be tempting to go for that cheap house that is right next to a main road but remember that people will have to live in it. Even if you make the interior beautiful and add a high-quality extension, the house will still be next to the main road, so people are not going to be willing to pay a high price for it and all of your work could have been for nothing. Research the local area you are looking to buy in to ensure there are good schools, plentiful amenities and good transport links.
Who are you looking to sell to?
When renovating your property, you must think about who is likely to want to live there. Don’t make modifications and additions that won’t appeal to your likely customer base. For example, if you are looking to let the property to students, don’t go overboard with the furnishings and fittings because they often aren’t that fussy. However, if you are making a quality home in a desirable area to sell to a family a higher specification is often required.
Employ reputable contractors
Property developer Ali Seytanpir advises that you should think carefully about who you employ to complete the renovations on your chosen property. Make sure that they are reputable contractors who won’t cut corners and use sub-standard materials.
Don’t rush into things
Property development requires a large amount of investment upfront, so you definitely should not rush into a purchase. Estate agents can sometimes be quite pushy, insisting that now is the time to buy. Listen to them but don’t be pressured by them - take things at your own pace to make sure that you make the right decision.