A lot of money can be made in property development; it’s lucrative, and profits are high. If you are creative, organised and have the ability to push a project through to the end, it may be ideal for you.
There are many types of property development. It can be residential, commercial or holiday accommodation, and the options don’t end there.
Challenges of property development?
Of course, property isn’t without potential risks. The market is constantly in flux, and you never know what direction it will move in, and whether there will be downturns. Brexit sparked much panic in the business world; many industries face uncertainty, including the property sector.
Darren Best from SavoyStewart.co.uk gave some advice on going into the property sector:
- It is important to be financially comfortable and budget-conscious when embarking on long-term commitments, as if anything goes wrong, you could end up in lots of debt.
- An increase in interest rates has had an impact on the sector, as well as the increase in construction costs; do your research into this before taking on your business.
- It is a competitive sector – you will be up against several other investors.
But… All business comes with potential pitfalls, so don’t let this put you off. Many have made a very successful career out of property development, and housing will always be in demand.
- Nowadays it’s all about who you know, as well as what you know. Utilise anyone who may be able to support you in any way – whether its financial help, marketing, digital or simply giving advice. Attending networking events for your chosen industry is a great way to make contacts.
- Brush up on the basics of marketing online and offline, as it is crucial for any business today to ensure it has developed marketing platforms.
- Remain patient. You won’t have a successful business overnight, most businesses start from the bottom and grow.
- If you have others in your team, make sure you delegate! They say “many hands make light work”.
Young property entrepreneurs
City AM spoke to some young property developers about their experiences in the sector:
Coming from a law and finance background, Gal and Tania both decided they wanted to work for themselves at the ages of 23 and 24. Subsequently, they set up G&T, and renovated luxury flats in central London – one of which was the highest selling property in Islington at the time. They found their niche in the crowded market, but did come across hurdles. They comment: “People see your age and wonder what you know about life.” Tania also had to deal with being female in a male-heavy sector, but they weren’t put off.
They now want to focus on schemes aimed at young people “We want to make it easier for first-time buyers,” says Gal. “We want to work on projects we feel more connected with”.
Adam Pinion became an entrepreneur at 16, when he invested inheritance money into business premises in his small town. Him and his brother formed Pin and Pin to delve into residential property.
The brothers chose to look at property abroad. They recognised Croatia as a growing market, but not yet saturated like Spain and France. “We could see a definite gap for a high end product,” they claim.
They faced difficulties – for example Croatia’s notoriously tough red tape – but this didn’t stop them from achieving their goal.
They have made a number of investments in holiday villas around the Dalmatian coast. The pair oversee all aspects of the business, and have many ambitions for the future.
It has become clear that there are multiple factors to consider before entering the thrilling world of business, particularly the property sector. An increasing number of millennials are setting their sights on becoming young, successful entrepreneurs. It certainly is an exciting time to get into business.