Tips on How to Start a Property Development Business in 2020
Thursday, October 1, 2020
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Have you ever wondered how you started this all-difficult property development business in 2020?
I recently saw a trend among budding developers, they were looking for an overview and reference of the property business development process and they wanted it in a simple and accessible way. Millennials Way.
This may be partly because much of the property market around Indonesia is flat or falling and these real estate investors are looking for ways to generate capital growth at a time when general growth is slower or non-existent.
That's why I've created a comprehensive guide covering the basics of today's property development.
Why You Should Be A Property Business Developer?
I know why many are wondering how to become a property developer because when you become a real estate developer, if you do it right, you will get:
Save money - your project costs 20% below market value
Earn money - you can make a huge development profit
Get better rental returns - which helps pay off the mortgage
Get easier finance - although it is a bit more difficult to fund development nowadays, after completion you may be able to borrow 80% of the property's value, which can be much more than your cost, giving you a better impact.
Get incredible tax benefits - on your new property.
Start With Who
With whom should you discuss the business you will be working on now?
Well you have decided that Property Development is the smart choice for you and you are ready to start discovering your options.
So who should you contact?
Who is going to tell you everything you need to know and offer directions?
Depending on the complexity of the project, you may only need some or all of the following team members:
- Real estate agents - but remember that their job is really just to sell you the property, they really can't even give you proper advice on property "development" - it's up to you and your team to decide.
- Financial strategists provide you with development finance - this is very different from investment financing
- Accountant - to help you set the right ownership structure
- Lawyer - to help with all contracts
- City planner and city designer
- Architect, designer or draftsman
- Engineers - civil, structural, traffic, acoustic, environmental specialists
- Landscape architect
- Building contractors
- Project marketing specialist
- Development manager
- Project manager
- Construction manager
- Quantity Surveyor
- Property Strategist - This is perhaps your most important point of contact. The Property Strategist's role is to assist property developers research, find and negotiate property purchases; maximize investment returns through property investment management, and understand financial mazes. A great place to start is with Metropole Property Strategists - where an experienced team can offer a more structured and predictable approach to property development.
Project Cost and Profitability
This is one of the most important aspects that must be considered before you invest in developing a property business.
The important question to ask is
Can I do this development and will I make a valuable profit?
Before you start any development project, it is very important to first determine how much you can borrow and how you will be able to manage all the costs associated with the development.
That's why it always advises you to have financial pre-approval before you start.
And that's the Tips on How to Start a Property Development Business in 2020 from us which might help those of you who are just starting out in a property business. We hope this article was helpful and useful. Thank you for visiting our article. For additional purpose we are translate this article into english.
