How to Become a Property Developer in the UK
Property development is a lucrative career that is exciting to business-minded real estate enthusiasts. Property developers have to buy land, secure financing, construct new buildings, or renovate old ones to increase their value so they can rent, lease or sell them for profit. The UK property development industry revenue is expected to hit the £36 billion mark by the end of the 2023 fiscal year. The potential earnings from developing properties in the UK are attractive to many, but some people find it difficult to kickstart their careers in this field.
Steps to Becoming a Property Developer
The thought of becoming a successful property developer and owning real estate might seem daunting at first, but threading the career path the right way will simplify the process and make you achieve your goal faster. Here are some steps to take if you want a career in property development.
Get the relevant education
You need to learn about the industry and the government regulations that guide its operations. Research the property market, dominant real estate companies, the real estate situation in different UK cities, and the working principles of the industry.
It would be best to get a formal education in property development to get the knowledge needed to succeed in the industry. You can enrol at online to learn how to become a property developer and receive a certificate on completion of your degree. That certificate will give you credibility while speaking to investors and clients.
Network with industry professionals
Making connections with people in the industry is vital for success. Ensure you relate with contractors, real estate agents, fellow property developers, architects, civil engineers, investors, money lenders, and other professionals directly involved in your fields. Sustain those relationships because they can land you big deals in the future, and get you in contact with top people in the industry. Attend real estate events, follow industry professionals on social media, join relevant associations and add value to the people you connect with.
Create a business plan
It is best to create a business plan before looking for properties to develop. Your business plan should outline your goals, the steps to achieve them, and revenue projections. It should also detail how to get funds for your projects, your construction plans, and how to lease or sell the property you develop. Creating this plan will keep you focused on your goals and guide you to make decisions in your best interest while you develop properties.
Source for funding
If you do not have enough cash to develop your properties, you will need external funding. This can be from private investors, banks, or other financial institutions. Most lenders will require you to have completed past projects, have a good credit score, and have a detailed business plan. You should also have a dedicated accountant and lawyer working with you to ensure the terms and conditions of the loan you receive are fair and legal.
Find properties to develop
After securing funding, look for properties that need development. You can find them through real estate listings, agents, and from your industry network. Before selecting any property, consider its location, potential resale value, and ease of construction. Consider the cost price, and the amount you will spend developing it. Only pick properties that will give you a significant return on your efforts and financial investment.
Supervise the construction
Building construction is the most important part of property development. During this phase, you will hire architects, contractors, engineers, and other personnel usually involved in construction. You should also get all the licences and permits needed to develop the property legally.
Ensure you set a realistic timeframe for the completion of the project with the contractors, and constantly supervise the construction to ensure everything is going as planned. Also, verify that the contractors are following building regulatory guidelines and ensuring their workers are working safely at all times.
Advertise and sell the developed property
After construction, inspect the property to confirm it's ready to be listed on the market. Once confirmed, look for a buyer. You can advertise the property online, in newspapers, magazines, and other print media. Tell real estate agents about your property so they can help you look for buyers and earn a commission for helping you seal a deal.
Property development is a career path well suited to business-savvy people passionate about real estate. It is challenging to become a property developer but by following the steps mentioned above, the process will become easier. Ensure you educate yourself about the industry and maintain a network of industry professionals. The people in your network will help you navigate the property development industry and help you make the right choices that will guarantee you success with your projects.