The way the UK property market is shaping up, it is easy to see why many people like the idea of buying a house, renovating it and turning a profit. There is a situation that many novice developers are looking at and deciding that they can get a piece of the action. On paper, this makes sense but there is also a need to look beyond just the basic statistics and figures of the UK property market. When you talk to people, you learn that many experienced and skilled developers are struggling or facing huge pressure in their work, so anyone coming into the market needs to make sure they know what they are doing.
This isn’t to say that novice or new developers should avoid the market, that isn’t the case, there is a chance to make a good return. However, there is a need to be realistic about what can be achieved. Help is available though and the National Association of Estate Agents, the NAEA, have issued some tips on how novice developers can achieve success.
The two key pieces of advice they offer are to:
- Stick to a local area that you are familiar with
- Start with simple renovation work
This may seem like two simple tips but the amount of people who get carried away with the prospect of success and undertake huge profits is startling. This is why people should initially focus on an area that they know well, that they know the people in and that they have an understanding of. It is possible to go online and check out property prices and expected rental yields for any part of the country but that doesn’t help you sell a home or know who to renovate for. This is why it is always best to have some local knowledge, or at the very least, work closely with an experienced estate agent who understands the local market. With that in mind, here’s a casual reminder that Spencer Harvey are skilled, experienced and big fans of the Stockport property market, so if you’re interested in this part of the country, we are here to help.
One of the most important things a novice developer must be aware of is controlling costs to maximise the margin of profit. It is quite common for people to underestimate how much is needed to carry out repair and renovation work, so whatever figure you are thinking; it wouldn’t be a bad idea to place an additional 15% on top of this for your budget.
If you are thinking of taking on a development project, you want as much guidance from local experts as you can, and this is why you should contact Spencer Harvey. If you want to talk about the Stockport property market, give us a call on 0161 480 8888 or drop us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html