You don’t have to be a financial expert to understand why developing property has seen a huge increase in popularity. Over the last decade, property values have gone through the roof, with the average house in the UK now topping the £200,000 mark. There’s rarely a week that goes by without media reports on the property boom, so for many, investing in bricks and mortar is extremely appealing.
For those who are keen on DIY, or want to escape their day job, renovating a house can help provide an outlet for creative urges, pent up after sitting in an office all day. And it is not as if the sector requires any particular training or qualifications and neither is there a strict template for success.
Rather than having to struggle through any bureaucracy to obtain licences, or cram hard to try and pass an exam, you are officially a property developer from the day you sell your first house for profit.
Another factor it has in its favour is the lack of any necessary overheads. Mark Smith already had a thriving property company, Always Home Ltd, at the tender age of 29. The Birmingham-based firm now operates on a wide scale in both the resale and rental sectors. However in its initial stages, Smith was able to get the company up and running with little in the way of outgoings.
“Initially overheads were very low and therefore running costs were easily covered by the capital injected by the directors,” he says. “As most of the work is ‘on site’ at different projects, and not customer facing we didn’t need an office either.”
And, although Smith gave up his job for his new business, it is possible to become a property developer while still working. Rather than having to jump in feet first, you can support your fledgling business with your existing job, thereby minimising the risk.
By working evenings and weekends it is perfectly possible to find a house, renovate it, and then sell it on within a six month time frame. However, the quicker you want to turn in a profit, the more time you will need to dedicate to it.
“You can become a successful property developer alongside your existing job,” says Neil Lewis, co-author of ebook Property Developer Secrets. “However being flexible about when you’re able to view a property is crucial to getting the best deals. That’s why city bankers tend to stick to Buy to Let investments because it’s more hands off.”
