Many would-be homeowners go to auctions to find places that they can adapt into their perfect properties. But auctions also attract another type of buyer: the property developer. This profession can incorporate everything from a one-property build all of the way up to a large scale plot earmarked for numerous dwellings. It can be a rewarding job, but there are a lot of things to consider if you want to join the ranks already involved. Here are just a few of them:
You should always go to auction having read the details fully; homework is important when it comes to the development market. You don’t want to end up buying somewhere that isn’t suitable to the project you have in mind. It is also vital to pick a top end budget so you don’t overspend; margins are everything when you are drawing a salary from your build. Make sure you have funds available before committing to anything at auction as you will find yourself in a difficult situation otherwise; be prepared to leave a deposit for any successful bids.
When it comes to auctions, there are sometimes other fees that you will need to pay. These could be in the form of commission, or even checks on the land you have bid on. Make sure to factor these costs into your budget so you don’t get any nasty surprises after auction day. It really is important to read all of the documentation you can get your hands on!
Of course, you are going to want to think long and hard about the possible profitability of your development. This means that you should plan exactly what will go where, and how much all of the materials will come to. Do research into the local area and find out what type of properties are in demand; this will help to bring you quick sales instead of your investment stagnating.
You will be speaking to the council quite a lot once buying a plot of land at auction. It’s great when you can get your hands on a plot with planning permission, but many property developers prefer to have their own plans drawn up and approved. You will need to ensure that your buildings fit in with the local landscape, and residents will have a right to voice their own opinions on the matter. It is worth remembering that these decisions can slow down your project so account for this in the planning stage.
Finally, it is a good idea to keep the environment in mind when doing any build. Many companies opt to have a protected species survey – such as the great crested newts survey from middlemarch-environment.com – this ensures they aren’t breaking laws or harming the planet. It is also a popular choice to pick low-impact materials and greener solutions when it comes to energy and power. This can also appeal to homebuyers if it will result in cheaper bills each month!