Starting Out in Property Development? Here Are 8 Ways of Getting Into the UK Development Market
The idea of a career in property development is becoming much more attractive. The predictability and viability of this career means they can really invest in their future.
What are the advantages?
- Value of property holdings will rise over time
- Renting provides a reliable and steady income
- Capital Gains Tax is now just 18%
But, how do you get involved?
- Buying a property, renovate and let out (or buy)
When following this step, it is recommended to purchase a property that is run down and in desperate need of a makeover. This will most likely mean it’s cheaper. This is best done at auctions.
Typical renovations include replacements and repairs to fixtures and fittings, updating internal and external areas and modernising the property.
However, before purchasing a property, you must have a goal in mind. What are you going to do with it once all the work has been done? See development sites in Ashford.
- Letting to a tenant: Your tenant will pay a lump sum every month and other fixed costs that occur in the property. You must remember that this monthly fee HAS to be more than your mortgage repayment.
- HMO: You have the option of letting out individual rooms and sharing the kitchen, bathroom and living rooms. This will give you five separate sources of income.
You can also do the same options by purchasing a commercial property and renovating to a residential property.
Although this sounds all great, how are you going to fund the development?
With Property Finance!
If you are starting out as a property developer, we recommend going to a private lender rather than a high street lender such as a bank.
A private lender will give you more flexibility and freedom with payback terms and you are more than likely to be approved. For finance loans for residential developments in the South, visit this website.