Property Development
The fundamental principal of property development is to buy low and sell high. Tafaders will work closely with you to indentify and acquire properties that, with the right approach, can be resold for a profit. Buying well and limiting your risk is key to successful property development. Before buying, we will help you explore different ways of maximising your profit.
Property development can be tailored to suit the new property developer or the more experienced developer. The size and scope of development alone will affect the level of finance required, the risk being taken and of course the profit.
- Refurbishments. A general decorative overhaul can push up the value of a property, without involving planners, architects and a big investment.
- Conversions. At its most simple you might take a house or a commercial building and develop into flats, but this still involves complex budgeting and financing. A professional developer would avoid using their own money to fund a major conversion and this is worth remembering if you're considering investing all your own funds. There's often a large gap between the value of a house and what it might fetch converted to flats - but there are also a lot of costs involved, and often a lot of pitfalls. Sometimes it's more profitable to convert flats back into a single house. Planning consent will normally be required in both scenarios.
- Change of use. The conversion of a building from one of business use into housing is a more complex proposition. For example, when turning a pub into flats, the big, initial risk is trying to buy the property without first applying for planning consent for 'change of use'. You should never buy on the assumption that 'change of use' is possible without serious research into the planning issues and a detailed conversation with planning officers. Many sales like this are achieved only when they are 'subject to planning', that is, the deal will only be completed, and the full purchase price paid, when planning permission is granted.
With any prospective conversion, you'll need to have a good understanding of building regulations and of the architectural possibilities of your property. When converting anything more substantial than a house, you'll probably need a professional team and you'll need to budget for their services.
The team should include:
- a quantity surveyor to ascertain costs
- an architect to design the scheme, help secure planning consent, and possibly project manage it
- an engineer to ensure you have a safe, structural solution
- an estate agent to help you sell the finished product
Our goal? To acquire your ideal development plot at the most competitive price, ahead of your competitors. Contact us today with your development requirements.
