A complete guide to buying property for development
If you are going to get started in property devolopment than you would be be looking for advice from an experience investor such as Glenn Armstrong http://askglennarmstrong.co.uk Glenn has over a decade of experience in property development, which is invaluable when trying to make money post the 2012 financial crisis. For those looking to get into development now, Glenns first piece of advice is to make sure that you select the best property. In addition, you need to master the following skills should you wish to maximise your return on investment when developing property:
1) Selecting the best property
2) Developing the property correctly
3) Financing the development
Selecting the best property
Its always important to start developing property that is close to where you live. Buying property miles away can seem like an attractive proposition at first, but when youre travelling to and from the property during development; this quickly becomes problematic. In addition, you are more likely to know the area if you stay local. Properties that have good transport links and are close amenities such as schools, supermarkets and hospitals are in high demand. By staying local, its easier for you to identify a property with these traits.
Developing the property correctly
When it comes to decorating the property, you are going to want to run with a neutral scheme that doesnt put off the majority of occupants. While it s tempting to decorate a property to your own personal tastes, its important to remember that everyone;s taste is different. Also, if you are development to let the property, a House in Multiple Occupation (HMO) could be an
option. HMOs are particularly lucrative in expensive or university cities. From an income point of view, HMOs can be advantageous with rental income being generated by multiple occupants.
Financing the development
There are a wide range of property development finance options available:
1) Buy to sell mortgages are a traditional finance method that are great for those with a good deposit and excellent credit history.
2) Bridging loans are short term loans that are available for those who dont have large deposits available. Your current development property can be used as collateral when applyi ng for a bridging