Choosing a Property to Develop

So, you’ve decided to go into the business of buying a building in poor condition that no one in his right mind would think of living in, renovate it, and sell it for a decent profit. Do you know what you are taking on? This step needs considerable thought and planning before you embark on what could be a very costly and time consuming venture.

Let’s assume that you have decided to take the plunge.  It will help if you’re a creative person and you can see the possibilities for a cosy home where other people would just see, “an uninhabitable eyesore,” and pull out. Before you get carried away with grandiose schemes however, it’s essential to thoroughly research the location and condition of the building. Let’s say, for example, you know that a particular building has a great deal of potential, and that all it needs is a modern kitchen and bathroom installed, but your research indicates that the property is in an unfashionable area with a crime problem. Avoid it, as it will be very difficult to sell whatever you do to it.  Remember the old adage, ‘better to live in the worst house in the best street than the best house in the worst street’.

The condition of a building may be quite obvious, but it’s important to bring in a plumber, an electrician, a carpenter, and any other expert who can examine the property carefully and give you an idea of whether or not it’s worth your while getting involved with a renovation project.

As with many things in life, it’s a good idea to start small if this is your first property development job, and choose a building that is basically in good condition, but which just needs to be updated and cosmetically improved.

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