So, you want to invest in property development? Well, that is done easily enough. Investing in real estate is a smart business move. It is one of the best ways for you to grow your business and to meet financial goals as well as build up a good portfolio. The thing is, it is only going to be a good idea if the developer that you are investing in is a good one. It would be unfortunate to invest a great deal of money, only to have it lost due to failings with the development company.
What Do Property Developers Do?
It is actually quite straightforward. They purchase land, apply for planning permission and then develop that land into housing or commercial properties. They could simply purchase existing buildings and renovate them for other uses. This is commonly done with old factories or office buildings and turning them into apartments. They will then sell the property themselves or collaborate with another company to do it for them. To generate funds, to complete development, developers will often work with investment companies to sell units. When the property is sold upon completion, the money is returned with interest as a part of the investor’s shares.
Due Diligence
You need to treat this like any other investment and do your due diligence of the development company behind the property that you are investing in. look into their reputation, their work history. Many reputable companies will have a portfolio of previous work that they have done. Ask them to see and potentially do some research into their previous developments to see how well they have lasted.
Doing your own due diligence is also a great way for you to learn about how this industry works. Understanding what you are investing in is the best way for you to make money. It also prevents you from being taken advantage of and potentially losing all the invested money.
Nevill Developments is a property development company based in Essex that has been in business for many years. It is a family run business and runs on the principles of family values. We believe in our development projects and work hard to ensure they are profitable. To find out more information, visit our website on www.nevilldevelopments.co.uk, or email us at info@nevilldevelopments.co.uk.