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5 Simple Steps In Becoming A Property Developer

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Becoming A Property Developer

Thanks to the rise in success stories like the Panayioutous’ and because of popular TV shows like Homes Under The Hammer, it’s often perceived that becoming a property developer is a get rich quick scheme and will make you your first million. However, attaining a positive ROI and becoming profitable isn’t as easy as it may seem. Yes, getting underutlised or cheap property, renovating and refurbishing the space, and then renting or selling them for a profit is definitely part of the process, but the truth is it takes a lot more to become a successful property developer, especially in today’s economy. Luckily, there’s 5 simple steps that you can take to ensure that you’re on the right track…

  1. Develop A Property Development Plan – Your first starting point is to have a plan of action for your short term and long term goals, here you’ll want to decide whether you want to buy-to-let or buy and sell. Buy-to-let is often a long term strategy and allows you to build an extended property portfolio, whereas buying and selling is a shorter term strategy and offers a quicker ROI (return on investment). Your decisions should be based on the volatility of the property market, the location, the property and area’s potential and always the rental yield and ROI. 
  2. Decide On Location – Picking the right location is crucial! The one mistake that amaeteur property developers make  is choosing property in an area which is already popular. To be a true sucessful property developer is being able to spot the potential in an area, like Andreas was able to with East London. This is how you make the most profit! Try to find areas which are near to newly gentrified areas.
  3. Buy On The Right Price –  The golden rule in property development is to make your money when you buy – not when you sell. You’ll want to pay as minimal as possible for a property to maximise profit.
  4. Ensure You Have The Right Finances in Place – Becoming a property developer requires money, and until you’ve sold your first property you’re likely to have very little money to play with to build your property portfolio. So, you need ensure that you have the necessary funds in place. If you have any uncertainty banks have property finance experts who’ll be able to give you any advice you need and point you in the right direction. 
  5. Develop For Y0ur Target Buyer –  It’s important to stay focused! You must remember that you’re renovation is not for yourself, it’s for your business. You are not doing up your own home, so you must renovate for your target buyer or tenant. Use your renovation budget to guide your decisions in a fast-moving market.

Factors Influencing The UK’s Property Market 2018

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Factors Influencing The UK’s Property Market 2018

 

Up until recently the property market in the UK hasn’t favoured first time buyers or tenants with extortionate house and rent prices across the country. However, this year with political and economic instability due to events like Brexit, things may be looking up for UK’s first time buyers, but perhaps property developers and landlords may not say the same…

1.  Thank Brexit 

Since the brexit vote, the property market has and is predicted to continue to see a halt on some foreign investment. This in turn will prevent homeowners from being able to put property into the supply chain affecting the property ladder this year.

2.  Low Interest rates

Although the economy is currently weak, another 0.25% hike is expected in Spring, which will take the Bank of England base rate to 0.75%. So, what does that mean for you? It may not mean much for you if you’re a homeowner on a fixed rate for your mortgage. However, the hike does mean that it will add any additional £22 to the usual £175,000 tracker mortgage. Yet, mortgages will remain relatively cheap, but with inflation most homeowners will find paying off their mortgage as a struggle.

4. Greedy Landlords Are Predicted To Struggle

After years of what some may see as unreasonable rent increases, landlords are finding that they can’t get any more money off tenants any further than they currently are. In 2017 the average UK rents rose by less than 1%  and fell in London. As inflation affects salaries this year, it’s expected that there will be few rent increases across the UK in 2018. And, with the new ban on letting agency fees coming into place in 2018, things are looking easier for Tenants.

The Panayiotou’s and their Charity Work

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George and Costas have always been committed to charity work, helping ventures that raise important issues that are causes close to his heart…

George and Costas Panayiotou are committed to charity work, it’s evident that this charitable nature and philanthropy is something which is spread throughout The Panayiotou family. His father Andreas’ company, the Ability Group are proud to support the Hilton in the Community Foundation Project.

Every year they throw a fun-filled, sparkling Charity Ball at the gorgeous Hilton Park Lane in Mayfair. The money raised is dedicated towards supporting young people along people alongside other corporate partners. With the charity’s main aim being to help as many young people as possible generating most of their funds from Fundraising initiative run by the Hilton.

Under the banner Supporting Young People Worldwide the Foundation is dedicated to making a real difference to those who are most in need. This is done through targeted grant-giving, with an aim to support smaller charities that might otherwise be overlooked.

In 2006, the Foundation donated over £1.3m to numerous good causes, including Action for Kids, Crisis UK, DebRA, Kids Cookery School, Show Racism the Red Card, Snowdon Award Scheme. The Hilton hotels and offices nominated local charities to receive 152 grants from money raised by colleagues, benefiting causes such as ChildLine, Watford New Hope Trust, Teenage Cancer Trust, Help a Local Child, Fairy Box and many more.