When it comes to making real money in the property market, it is fair to say that being a property developer is the way to get an impressive return for your money. Good luck and sensible investments have helped many people to make a good return on their initial investment in the UK property market but when it comes to receiving a sizable return in the short and long term market, there is a great deal to be said for getting involved with the property market. If this is something that you have considered, but never thought too seriously about, you will find that there are a number of key benefits available in the property development market that may help you to decide that this is an opportunity that is right for your needs.
Property developers get to make impressive savings
While individuals buying a property for themselves or even as an investment have to buy at the retail price, property developers have the opportunity to snap up properties for a price around 15% to 20% lower than what the normal market cost would be. This is because there are a number of costs that aren’t involved at this stage, so there is an immediate scope to make a good return on your investment.
A property developer will be able to avoid paying commission to agents, GST, the costs associated with marketing and many other fees which mean that a traditional property buyer ends up paying a lot more money.
Property developers tend to find finance easier to come by
This isn’t the case in every situation but on the whole, there are financial benefits to gain from acting as a property developer. When you have completed a property development project, there is an opportunity to turn to banks or financial institutions and re-mortgage the properties. Many developers find that they are able to receive around 80%, if not more, of the retail value of the property, once the building and renovation work has been completed. This will hopefully mean that you can comparatively borrow the entire cost of funding the project, which provides great peace of mind or comfort for a property developer.
Property developers have leverage
Once a property development is complete, there is an opportunity to develop leverage. All it takes is owning two or three modest properties or one notable property and you will soon find that you have a lot more leverage at your disposal.
Property developers can receive sizable rental income
You only have to look at the demand for rented accommodation across the United Kingdom at the moment, and particularly in London, to realise that this is an area where property developers can obtain a good level of income. Whether you have worked with the most effective builders London has to offer or you offer luxury buildings, you should find that the current state of the market indicates that people are willing to pay good money to obtain high quality rental accommodation.
There is a degree of security associated with property development
As long as you have researched the market thoroughly and taken proper steps, you should find that your development site provides a great deal of security for property developers. The advantage of owning real estate is always a great comfort and even if the property market changes, limiting your opportunities, you should find that you have a strong backup for your investment.
There is also the fact that property developers who understand the market will find that they can make sizable profit if they decide to sell their property. Knowing how to make the most of the market is important but property developers who understand and research the market will find that they are able to make the most of their opportunities.