As a Property Developer, it is important to carry out all the necessary checks to a property before you put pen to paper. From ensuring the right utility infrastructure is in place from the outset, it’s essential that you take every element into consideration before purchasing a property.
Here are a few of the key things you should check before purchasing a property.
Site Of The Property:
It is not uncommon for developers to undermine the importance of checking the site of the property. It’s essential to consider the key elements of the property such as utilities which include gas, electricity, and water – failing to check these elements can lead to a significant increase in the development costs.
By checking the utilities (pipes, cables, etc), you’ll be able to plan your developments much more thoroughly. As well as allowing you to identify areas where additional costs may be encountered – helping you to budget your development more accurately.
Failing to check the site of a property can not only cause inaccurate budgeting, but it can also ruin the viability of the project.
Finances:
Before purchasing a property, it’s essential that you know your budget – as failing to do so can minimise the chances of any profit being made. Before you jump into the property market, it’s important that you budget correctly, but also assess the current market to ensure your purchase is worthwhile.
Furthermore, identifying your budget will ensure you don’t purchase a property for a higher price than you budgeted for – allowing you to carry out your developments in line with your budget.
Following this, knowing your budget will prevent you from making an offer that you may end up withdrawing. Withdrawing from an offer can really affect your reputation as a developer – making it essential that you avoid this from happening.
Nearby Developments:
It is likely that there will be other developments occurring within the local area which can change the speed at which you can sell your property. Due to this, it is important that you assess the local competition which can give you a clear insight as to whether a property is worth purchasing.
If the surrounding projects are similar to the plans you have, it may make purchasing a property less advantageous as the demand for a specific type of property can decrease. Making it harder to sell a property quickly.
Following this, doing your research on nearby developments can help you to know when those projects are due to finish. This information can help you to plan out your developments to your advantage, helping you know whether your property developments are worth being carried out before you start.
How Can We Help:
As experienced private lenders, we can finance your construction, conversion, or refurbishment with a flexible short or long-term loan.
We can act as both a first charge principal lender or as a second charge and mezzanine lender, filling the gap your senior lender is unable to provide. So, whatever the nature of your finance, we can work flexibly around your needs and timescales to deliver your development project.
If you are looking for a lending partner – don’t hesitate to get in touch with our team today.