The thought must pass through most people's minds at one time or another. And it's easy to see why. Many of these shows feature people who quit their jobs, get into property development, and manage to quickly make a five figure profit despite not really knowing what they're doing (and normally by ignoring what the experts say too). Of course, it's easy to forget the episode of the show where two people worked full-time on a house for six months and made a small loss.
If you're determined to be a developer, here are 7 secrets to help you.
1. Pick a target market: Decide in advance what kind of property you want to create and who will buy it. Check with local estate agents that such a market exists.
When you are looking for a potential property, keep your target market in mind. If you plan to renovate a bungalow for an elderly couple, will they want to live in the same street as a busy pub?
2. Do your research: There are plenty of risk points within property development, the biggest being your choice of property to work with. Whatever you do don't rush into buying a house without researching the area and potential for profit first. You should try to find areas that are not super popular now, but are clearly on their way up. Don't buy in an area that's becoming run down - property there will be cheap for the wrong reasons.
Read the local paper to keep up-to-date with what's happening in the area, paying particular attention to crime levels.
3. Get a cheap property: Tell local estate agents you are moving into property development and ask for help to find suitable houses… you'll be doing them a favour if you buy from them. It will also be worth you speaking to all of the local property auctioneers to see what's coming up for auction in the next few months.
4. Keep costs under control: Once you've bought a house, congratulations - you are now officially in property development! The next stage is to bolt your purse or wallet shut and try to spend as little as possible. Every pound you spend on the house is potentially another pound off your profit. And don't forget that's why you're doing this: to make a profit. Few people do houses up for fun and no financial reward.
5. Don't make it personal: When you're doing your own home up, you can afford to take time and money to get it perfect. When you're in property development you can't. A property is a tool to earn you enough money to live on, and buy the next property.
The worst thing you can do it fall in love with the house or mould it how you would want it to be. Yes, you may have great style, but everyone's different, and people are more likely to be pay top dollar for your house if they can see it doesn't need much work doing, and is essentially a blank canvas they can turn into a home.
6. Get your hands dirty If your idea of property development is getting someone in to do every job, it's probably more a hobby than a business. Qualified labour is expensive and should be restricted to the things you're not allowed to do yourself, such as electrical or gas work, or important things you're not good at like bricklaying. Paint the house and do the garden yourself. Your passion should make up for any lack of skill. And remember potential buyers will probably change these things anyway.
7. Get help: Finally, remember not to rely on the advice in this article. Before you make a move into property development you should get specific advice from property specialists.
For further information on Property development please visit our website at www.propertytoday.co.uk
