Checklists
Checklist provided by
|
|
|
 |
So you want to make money from property? One of the best ways to do this is buying land or a project and developing it, but it's not easy to do, it takes time, a lot of expertise and it's risky, especially if the market goes south. |
|
|
John Howard is an extremely experienced property developer who has ridden many property market ups and downs - unlike the many so called 'property gurus' who have often gone bust or owe the banks or private individuals money. | |
|
Here are his 'Top 15 property development tips' to get you started: | |
| |
1. Don't start with a 'deal'. First you need to learn what you can and can't do, whether it's a small or a large project:
When can you use permitted development rights? Are you likely to be working in a Conservation area - what are the restrictions? Are the planners development friendly or not? What building regulations will be required? |
|
| |
2. Understand the Local Plan - by law each Local Authority has to have one. It explains what homes are wanted and needed and highlights where they are planned to be built. | |
| |
3. How long are planning approvals taking in your area? | |
| |
4. Renovation projects need to drive 20% profit - can you make this stack up in your area? | |
|
5. Self build/bigger projects should be delivering 30% profit - how achievable is this? | |
|
6. Be realistic about the costs of a project, don't under estimate costs and over value the property. Don't assume you can sell at a higher price than anyone else has done before. | |
|
7. Can your project survive a 20% fall in prices? Can you let it if you can't sell?
|
|
|
8. Find an architect that has successfully worked with the Local Authority on similar plans and ideally overturned rejections on appeal. | |
|
9. Find local builders and understand their timescales - the good ones may be booked a year in advance, understand their payment schedules and insurance. | |
|
10. Understand what national/local resources are available to find projects eg Plotsearch, or if you want to build your own home, your Local Authority must consider your request via a Custom Build Registry. | |
|
11. Find a local surveyor to work with to help you with valuing land/projects and renovation/build costs. | |
|
12. Check out what access you have to development finance. How long are the loans for? What will it cost? | |
|
13. What if the project takes longer or you need more finance? What checks will you need at each stage to release the next phase of finance funding? | |
|
14. Is there any government finance available? | |
|
15. What insurance will you need - for the site and for the build? What will the costs be? | |
|
For more property development hints and tips from John Howard, visit and subscribe to his YouTube channel. | |
