Property development involves a wide range of activities and processes from purchasing land to building and developing facilities. When choosing property development there are many positive aspects to consider, for example:

Savings

Rather than buying properties at market price, you can acquire your investments 15-20% below their market cost. This is because you don’t have to pay developers margin, agents commission, GST, marketing and other costs usually included in the price of buying real estate.

Easier Finance

You can approach banks for a re mortgage on your property. They will usually lend you 80% or more of their market value when completed after you have finished your development project.

Profits

You can usually make good profit selling development projects at the right time in the property market.

Tax Benefits

Owning a new property gives you all the benefits of depreciation allowances giving you a great “after tax” return.

Higher rental return

Your tenants are the ones paying the market rents, therefore they won’t know that the cost of your property was substantially below the market price. This means your rental yields will be higher than for someone who bought their property at market value.

Security

Property development can be very lucrative. If you buy your development site well your investment will always be underpinned by the security of real estate. Becoming a property developer allows you to grow your property portfolio faster and safer than most investors. You can potentially make significant profit by developing a residential site and capturing the increased equity of a property developer without actually having to get your hands dirty.

For more information on property development or to view any of our available properties feel free to browse the rest of our site or give us a call on 01482 753661.