August 27th, 2014.
From Architect to Property Developer: A Natural Path
Many architectural students dream of one day being able to look out of a window to see a building they designed. But once that goal has been accomplished, what’s next? What is that next big career step? Well, many turn their hand to property developing.
Reap the Benefits
As an architect you spend your entire career designing properties for other people for a fee, but you never receive the real benefits of getting to live in the building or enjoying the equity released when the property is sold.
By becoming an architect and a property developer you can design and build, or renovate, your very own dream home or a second property for investment purposes. This can be a great money making venture if you develop the right property, in the right area.
Save Money on Services
In a professional capacity, there are some restrictions. You cannot be an architect and developer on the same project, at the same time, as there could be a conflict of interest that would not meet the RIBA and ARB codes of conduct. And by law you cannot have contractual conflicts with yourself.
You can however, roll the jobs into one when working on your own personal development projects. So, with only one person designing, planning and running the project you can cut out others involved and lower the costs drastically. That money can then be used elsewhere in the project; to improve the fittings and fixtures for example.
You Have the Money
There is, of course, the simple reason that architects are, generally, very well paid, and investing in bricks and mortar may be a sensible option for making more on your healthy income. It could make you a hefty retirement fund.
Architect’s Always on Site
Usually if something goes wrong on site, the architect will have to be called out for a fee. If the developer is also the architect, it is more likely that you will be on site if and when a problem occurs, meaning alterations can be made quickly and cost effectively.
You Know the Planning Restrictions
As an architect you will be familiar with the planning permission process and you’ll have gained knowledge from actual experiences of what is likely to be passed and given the go ahead. This can save you a lot of time and money; by having the ability to create a design that requires no alteration, you are more likely to be successful.
If you are an architect thinking about making the leap into property development, what’s holding you back? It’s the natural next step and can be extremely beneficial.
Do you have any questions about property development finance for your next project? Get in touch and we’ll answer your questions.