Property Development Sam Bains 10 Development Rules

Property Development Sam Bains 10 Development Rules

 

Planning a property development but don’t know where to start? Sam Bains has 10 golden rules that apply to any project – follow these fundamentals to prevent yourself taking a big financial hit.

 

Sam-Bains-2Rule one: don’t pay over the odds

Buy at the right price. Spotting a bargain that can make you some money is a real skill – pay too much and you’re immediately at a disadvantage.

Sam-Bains-3Rule two: get your budget right

Work out a realistic budget, not forgetting the cost of buying and selling, and borrowing costs. A common mistake is to overlook some items on the big list of costs and fees associated with developing.

Sam-Bains-5Rule three: be realistic about how long it will take

Setting a realistic schedule will help you avoid the mistakes we’ve seen all too often .. It’s not unusual for developers are overly optimistic with their scheduling. Allow contingency money in case unforeseen problems stretch your schedule, and think on your feet to minimise any overrun.

Sam-Bains-4Rule four: set an attainable sale price

Be realistic about how much you can sell for – you can dream, but if you want to actually sell you need to do so for an amount someone is prepared to pay. Amateur developers have often invested blood, sweat and tears into a development, and this can on occasion lead to them expecting an inflated price from a would-be buyer. Coupled with a falling market, this can lead to a serious squeeze on any profit.

02_Sam-Bains-2Rule five: make a quick buck

Get in and out fast before there is time for the market to fluctuate too much…

02_Sam-Bains-3Rule six: in it for the long haul?

…Or alternatively, take on a much larger long-term development that is likely to take five to ten years to complete.

02_Sam-Bains-1Rule seven: go with design classics

Design well – bland is not good enough, especially in this market. Equally don’t go mad – simple, classic design will work wonders.

02_Sam-Bains-4Rule eight: finish the job properly

Solve problems for the new owner – if the roof is a bit dodgy then replace it. Make sure the plumbing and electrics are all in good working order, because nobody will pay top dollar for a house when the the basics aren’t right.

Rule nine: strike a balance

Make sure that you don’t end up with a property that’s unevenly balanced – a good number of bedrooms to bathrooms and reception rooms is critical. It can be tempting to view extra bedrooms as a quick route to a big profit, but if that means an undersized kitchen, lack of living space and inadequate bathrooms then you won’t see the return you’re hoping for.

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1 Comment

  1. Kassi

    Good to find an expert who knows what he’s tailnkg about!

    Reply

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