Things to consider

People are starting to see the potential of property development, and it’s not surprising. After all, nothing beats making a great deal of money while utilising your creativity in the process.

If you’re one of the many people interested in getting into this ‘lucrative’ business, my advice is to slow down.

Although property developing and putting it up for sale or rent can be done by anyone, it doesn’t mean that everybody can be successful in it. It requires a lot of money, and if things go wrong, you may just find yourself buried in debt.

Aside from a huge capital, it takes skills and research (a lot of them too). It’s not as simple as buying a random property, making improvements to it, sell it, then you get your money. That’s just not how it works.

What makes property development a viable career for many is that one, it doesn’t require any particular type of qualification. Two, you can do it anytime you see fit, and it doesn’t even have to disrupt your full-time job (if you have one). And three, it’s very rewarding which is already a given.

Let’s say you’ve already done your research and there’s a property you’ve been eyeing on. Before you decide to take the plunge, think about the following considerations first.

Define your target market

This should be one of the first things you need to pay close attention to before everything else. Know your target market inside and out.

When you start considering areas where you want to start developing a property, think about who would want to buy in that area. Is the location ideal for:

• Families?
• Young professionals?
• Students?
• Retirees?
• First-time home buyers?

All these groups have different needs. Defining your target market will establish how the whole development process goes. For example, it doesn’t make sense for you to buy and develop a property near busy roads if your target market are families. Obviously, it would be unsafe to do so.

Condition of the property

It goes without saying that you’re up to the challenge of renovating a property. But it doesn’t necessarily mean that you should jump straight away at every opportunity presented to you.

A survey done by a chartered surveyor will give you a better grasp of a property’s worth. A full structural survey is highly preferred compared to a basic one. After a thorough study of the property, ask yourself if it’s possible to do some of the repairs on your own.

For parts that need serious attention, get professionals to do the job. Again, with the power of research, get quotes from multiple contractors with the best ratings and recommendations. You’d want them to be trustworthy and be able to finish the task on time.

Remember: Selling a house with defects is unsafe to live in. You can get yourself into serious trouble because of this so keep that in mind.

Safety

Most people do not want to live in a neighbourhood that’s unsafe.

The curb appeal of a property is a significant factor in this business. But at the same time, peace of mind is something that buyers will also consider before the purchase. You would not want to skip this part.

Since you already took the time to do your research about the area, extend it a bit further by asking local police departments. Crime rate statistics will also help in knowing if the area is safe and secure.

The best location

A common mistake in this industry is getting a property in an area that’s already well-established. You will most probably pay the highest price if you buy a property in the centre of the ‘best area.’ This would take a huge chunk away from your profit which you don’t want to happen for sure.

You need to have the skills to be able to spot an area that’s on the rise. Be one of the first people to buy early. This is where the greatest chance of making a healthy profit lies.

Ideally, you’d want to develop an area located on the outskirts of an established city.

Room for growth

Locations that are just starting to undergo gentrification are the perfect place to start your property development journey. The secret to success in this industry is to ‘buy low, then sell high.’ And these are the places where you’d be able to get properties at low prices.

Look for areas with employment opportunities. If you notice large corporations moving to the area, migration will follow. You would want to seize that chance right away. If there are schools that are being constructed, students will naturally follow as well.

Future developments like hospitals, banks, shopping centres, roads, and other amenities are just some of the signs that you have to look for.

Unexpected costs

No matter how prepared you are, there will always be unforeseen costs along the way. You will not thrive in this business if you are unprepared to face such things.

Calculate how much you need to replace major parts of the house for instance. Always have an extra amount of cash as a buffer for these unforeseen renovations. Not doing so will just prolong the development of the property and worst, the value will have depreciated before you sell it.

Allot funds for the following:

• Getting a structural survey done
• Maintenance and repairs
• Hiring contractors
• Fees you may have to pay to agents
• Structural issues

Watch the market

Another common mistake that developers make is thinking that they make money when they’re able to sell a property.

Not quite.

You make money in property development when you buy, not when you sell. Losing your head over an ideal property will lead to you paying more than what you had planned. The result? You’ll have a tough time making a profit when it’s time to sell.

Make yourself aware of the market trend. Take into consideration that prices may change while you’re still renovating the property. If the value goes down before you’re able to sell it and you bought it at a higher price, you’ll lose money.

Give yourself the best possible chance of making money by trying to buy below the market price.

Conclusion

Always remember this: you’re putting your money on the line in this business.

Time is of absolute importance. Faster turnaround means you’re able to make a profit quicker. The quicker you make a profit, the more capital you’ll have for future projects.

Author Bio

Emma is a part-time property developer who loves sharing how others can make their homes amazing both inside and out on her blog Fixtures and Flowers. You can chat to Emma on Twitter.

 

There comes a time in many people’s lives when they are finally ready to part with their home or simply need to move somewhere else. Selling a home is not hard business, but it is ideal that you sell it for a good price and not miss out on potentially great offers. Even though your home may already be highly desirable on the real estate market, there are some general tips that are easy to follow and that will definitely boost its value for any potential buyer:

1. Fix Anything That’s Broken

This goes without saying – when selling house, you must make sure that everything is running smoothly and that you are not passing on all sorts of faults to the next owner, thus risking to sell for lower price than what you hoped for. Check your tiles, make sure there aren’t any cracked ones, test your door knobs and your cupboard doors.

Make sure your doors don’t squeak, your walls are moisture-free and all your light bulbs are up to date. Sure, a prospective buyer will not pass on your house because of a flickering light bulb, but he or she will surely feel more like at home without any pestering inconveniences.

2. Revive Any Pale Colours

Look around your home. Does it have a fresh, popping look or does it feel like it’s been lived in for five decades? By this we don’t mean slapping on some lime-colored paint on the walls, but simply reviving already existing colors and softening too stark ones. For example, you can repaint your walls so they make the room feel brighter and more spacious once more.

If you can’t afford to replace older furniture, consider applying a fresh coat of paint – it will definitely give it a crisper look. Also make sure to check your curtains and your rugs – consider replacing them if they look beaten up. It’s so little, but it can do so much for a first impression.

3. Don’t Underestimate Smells

Just as the visual aspect is a powerful influence over someone’s first impression of home, smells are the unseen and underestimated forces that govern our perception. For example, if you are a smoker and are trying to sell your home, chances are that the tobacco smell has persisted in time and your prospective buyer may feel put off by it. This can be easily avoided by placing vinegar bowls around the house a couple of days before the viewing – this way you are allowing for both the cigarette and vinegar smell to dissipate in a timely manner. Bad smells can also come from clogged drains, old bed sheets, cooking items and so forth. After eliminating these, you can go the extra mile by providing alluring smells with flowers, incense sticks and why not, even fresh coffee.

4. Declutter, Declutter, Declutter

Your most important objective is trying to make your home appear luminous and spacious. This is also achievable by throwing out any unnecessary items that you might have kept for sentimental reasons – they won’t matter to the new person coming in to live in your house and it will only clutter the place up. However, this doesn’t mean it needs to look sterile and bare, but rather airy and in good taste, with no unnecessary stuff left around to fill up space. Leave a couple of items that define your personality, so the place can still feel like a home with an edge.

5. Update Your bathroom and Kitchen

These two rooms are so important to prospective buyers that they can make or break the deal. Of course, you can’t put in a shower cabin apart from your bathtub, just to please as many contenders as possible. But you do need to check your plumbing and inspect your sanitary ware. Get rid of rust or any limestone deposits.

Similarly, check that everything in your kitchen is running smoothly, disinfect everything and make sure the fridge has no unpleasant smells. Replace your set of chairs and table or upgrade your countertops to something snazzier, if it is required – anything your budget allows you to. You are guaranteed to have a greater return on this type of small investments once you sell your home.

These are small pick-me-ups that your home can definitely use in order to gain a fresher look and become more attractive on the market. Just make sure you think as a buyer and imagine what you would like to see when browsing for new homes. Whatever the changes you apply to your home, make sure to keep it simple and uncomplicated.

Have you noticed that there is a leakage in the pipes? Well, you need not panic in this situation. We will suggest some do it yourself measures before you decide to seek professional help.

Ways To Detect Leakage In Your House

Checking your water meter

You need to start with checking your water meter. Try to turn off all the water sources in your house. Make sure that all the faucets are shut off. The washing machine and the dishwasher should not be running as well.

When all the water sources are shut off, then you can evaluate the water situation. If the water meters changes once the sources are shut off, then this means that there is a leakage in the pipes.

Get hold of some food coloring

Do you know that the washrooms account for 30% water usage in-house? This is why you should be sure if your washrooms are in a working condition. To test for the leakage, you should add some food coloring to the toilet tank.

Now, wait for about 10 minutes. If you notice that color shows up in your bowl, then this means there is a leakage. The leakage is allowing the water to flow from the tank to the drain without even flushing the bowl.

Monitor the exterior usage

Most people have a wrong perception, and they believe that the leakage can just occur inside the house. Well, this is a wrong perception, and the leakage can occur outside the house also. This is why it is important that you should check the outside spigots also.

You can monitor the spigots by attaching the garden hose. If you notice water seeping through the connection, when the hose is still running, then this means that you have to repair the rubber hose gasket.

After this, you should check all the connections again.

Make it a habit to check under the basins and the back of the cabinets also. If you notice any foul smell or mold, then this means that there is a leakage that needs to be fixed at the earliest.

If you have a very old house, then you should know that the drainage system is bound to experience a decline. This is why you cannot be ignorant of this situation.

Ideally, you should call a professional once a year to check out the irrigation system of your house. If you feel that you lack the expertise to identify leakages, then in this situation you should contact a professional leak detection service.

The good news is that if you live in Melbourne, you can get hold of the best services for detecting a hidden water leak. This way you can avoid major repairs due to leakages. When you contact a professional service for leakage detection, be upfront about your queries and concerns.

This way the service can assist you in the best possible way, and the job will be done according to your satisfaction. Once the leakage has been identified, do not delay the repairs by any means at all.