January 12th, 2015.
Be Prepared for Your Property Development
Are you a novice property developer dipping your toe into the sea of the property market? Then it’s best to be prepared for a tidal wave. Here’s how to prepare for every eventuality when developing property:
Appoint the Correct People
One way that property developers often cause trouble for themselves is by employing the wrong people for the job. Although you want to keep costs down to make the most money possible going with the cheapest quote may not necessarily be the best idea.
You’re looking for value for money, someone who knows how to complete the job to a high standard, on time and on budget. You often pay for what you get.
You want to take particular care when appointing an architect, engineer or contractor as the decisions these people make can affect the entire job.
Ensure Adequate Time and Budget
Ask any experienced project manager what the two largest threats to development are and they will say time and money. If you do not plan carefully, and create a buffer, you are likely to overspend and overrun your timeframe.
And if you rush or try and do things on the cheap the property will suffer. You need to do a job properly.
Employ Health and Safety Regulations
Avoid accidents and damage by implementing simple health and safety protocols. Any work site should meet the standards of the Workplace (Health, Safety and Welfare) Regulation 1992.
Ask your principal contractor to draw up a H&S plan and ensure it is adhered too. Work should not commence until this has been done, and once the job has been completed keep this file for any future maintenance or development.
Create Provisions for Snagging
However well you do your job there almost always will be something that breaks or does not work correctly when first used. Create a contractual promise so that should you lease or sell your property you will fix any problems that arise within a year of completion.
Do Your Land Research
Space may be at a premium, but it is important not to develop poor quality land just for the sake of it. Before purchasing a property or piece of land find out if the land is a brownfield site. This is land that was previously used for industrial purposes or commercial use.
This land may come with urban buildings ripe for refurbishment, or plenty of space to build, but the area may be contaminated, polluted or hazardous which could be expensive to clean up. Many people who develop brownfield land also suffer from poor drainage, flooding, sewage issues and more, so find out what you are getting yourself into.
Sort Your Finances
We’ve already mentioned running out of money, but what do you do when you run out and need more to complete the job? This is where Pure Commercial Finance can help. Our financial professionals can find you funding at any point along the line, and we’ll make sure we get you the best deal possible.
If you are starting out in this industry then speak to us today about property development finance on 02920 766 565.