| Here are the 5 key factors in gaining the highest | | | | purple wall with pink skirting is a design masterpiece |
| profit in property development. | | | | but I can assure you others will not. In order to get |
| 1. Location, Location, Location. - Location is key if you | | | | the highest amount of interest and therefore a quick |
| want to become a successful property developer. | | | | sale, the viewer must be able to picture themselves |
| There is absolutely no point spending money on | | | | living there. If they want to have bright colours on |
| renovations to a property where prospective buyers | | | | the walls, they can paint them themselves once they |
| are not going to want to live. When viewing the | | | | have moved in. You do not have to stick to magnolia |
| property, think to yourself "if this property was | | | | walls and beige carpets, there are a wide range of |
| renovated to a high standard, would I live here?" If | | | | whites and pale colours to choose from, each adding |
| the answer is no, then it is highly likely that others will | | | | a touch of class to a room. If you want to add |
| form the same opinion, renovated or not. Also, check | | | | colour, add it through furnishings which can be |
| the local amenities. A highly commended school, train | | | | removed once the property has been purchased |
| station with links to London, bus stop nearby or high | | | | such as paintings, cushions, curtains, flowers and rugs |
| quality local restaurants etc. can easily add to the | | | | etc. |
| value of a property and appeal to a wide market. | | | | 4. Calculate a realistic budget and keep within it. - |
| Being located on a main road will not appeal to those | | | | Make sure that once you have purchased a property |
| with pets, or those looking to retire with peace and | | | | for renovation, you know all of the improvements |
| tranquility. You must research the area before | | | | and changes you wish to make and work out a |
| committing to buy a renovation project. Property | | | | budget from that. Sarah Beeny's Price the Job is a |
| renovation is all about thinking with your head, and | | | | great book which helps you work out a budget for |
| not your heart. | | | | every job. It gives estimated prices on everything |
| 2. Realise your key market and stick to it! - Once | | | | you will be buying from the cost of hiring a bricklayer |
| you have researched an area and found a property, | | | | right down to the costs of various light switches. |
| you must decide on who you will eventually want to | | | | With property development it is always a good idea |
| sell the property to. The location and local amenities | | | | to have a contingency budget, which is usually 10% |
| will be a key factor in this decision. Once you have | | | | of your main budget. This is only due to the fact that |
| decided which market you are aiming for, you must | | | | more times than none, something will be uncovered |
| renovate the property with this in mind, and stick to | | | | which you will have not budgeted for. However, only |
| it. The elderly for example, are likely to want some | | | | use your contingency if you really have to. |
| outside space and nothing too modern. A young | | | | 5. Never ride the market. - Never base your profit on |
| professional will usually opt for the ease of a shower | | | | the behaviour of the property market, no matter |
| rather than a bath, and an eating space in the | | | | how strong the market is, or how certain you are |
| kitchen. A separate dining room or outside space | | | | that there is going to be a rise in the market. By |
| may be desirable for some, but is not essential for a | | | | doing this you will make a profit when the market is |
| young professional as they do not have the time to | | | | strong, but if it starts to weaken (as it has lately), |
| garden or have dinner parties. | | | | you will end up losing a lot of money. Obviously the |
| 3. Don't get personal. - If renovating a property to | | | | market will have some affect on your developing so |
| sell rather than live in, you must keep your personal | | | | keep a firm eye on it, but there are properties out |
| tastes for your own home. You may think a bright | | | | there and profit to be made even in a weak market. |