How can you make money from investing in property development? You need to find an area with a healthy, steadily growing real estate market; such as Brisbane, Australia. There are three things which you must do following this – First, determine your goal and your plan of action, find funding and o a relationship with real estate agents. Secondly, you’ll have to work through ten important steps (keep reading for those) and last, make contacts with turnkey property managers.
1. Determine your Objective and strategy:
Quite a few investors will buy a property without really thinking it through. A good location or an exceptional property may induce someone to buy, even if the property does not fit in to their plan.
You also need to know what your plan is for any property you look at with a view to buying. Are you planning to divide the property and make your profit on the sale of these portions? Or are you looking at a more long term investment goal, for instance renting the property?
The time you’ll need to invest in developing the property has to be taken into account. How long will you need to turn this property around? Does this fit into the time frame envisioned in your goals?
2. Establish your funding:
Your financing needs to fit into your budget for this investment and also be the right type of financing for your needs. You want to save money of course, but funding which will allow you to either sell or retain the property as your objectives dictate is equally important.
You have two types of financing to consider here – you can opt for consumer or developer financing. One or the other may be better suited to your objectives, depending on what you plan to do with the property. You and your financial advisor can discuss this question.
3. Establish relationships with selling agents:
You need to find estate agents that know a bit about property development. Developing a relationship with one won’t be easy since not many real estate agents know much about property development. You need ones that will introduce you to the right sites. If you find a really good agent they may be able to show you sites that have not even reached mass market yet. Therefore, establishing a good rapport with the right agents can mean the best investment opportunities for you.
2. Follow Step one with:
Develop a preliminary feasibility mechanism.
Researching and assessing prospective site(s).
Negotiating for and securing sites.
Conducting due diligence and research.
Secure presales, funding and consultants / contractors.
Obtain Development Approval.
Conduct Operational Works.
Sealing & Titles.
Sales and settlement.
3. The all important step: Getting in contact with a “turnkey” project management service
As a property development investor, having a turnkey property management service in your corner is essential. These professionals already know how to handle all of the many complex steps involved in developing a property; so you don’t have to put all of your time into researching these complicated issues. This will mean saving something even more valuable than your money: your time! An expert turnkey property management service can get you a much better return on your investment and can make all the difference in the world to your investments.
The entire process of developing property is quite involved. If you are new to this venue of investing, then having the right sponsor or mentor can make all the difference. Investing and developing property is time consuming and takes a great deal of experience, money, and many skills. To get it right and achieve your main objective, that is profit, you need a strategy, know how, and hard work to achieve the right results.
If you want to take advantage of the investments available in Australia today, the right property management service can help you to expand your investment portfolio with multiple properties. The right service will be able to offer you all of the expertise needed to make your investments successful ones.
Author: Paul T. RobertsonThis author has published 3 articles so far.