Once you’ve considered your approach and your business plan for property development, then it’s important to make your development a worthwhile venture. Not only must you have the right skills to do well in the property development industry, but it’s vital to know what makes a successful property development. With our track record of delivery here at Salboy, we know what it takes to build a great development and to get the most out of the opportunity.
Properties in a good location
To make the right choice when it comes to deciding which location to develop in, there are several considerations that you need to make. Picking the right location is key to ensuring that your development is a worthwhile venture and will provide a good return on investment for all parties involved. First and foremost, it’s important to choose a desirable location – the area should attract residents, including both buyers and tenants. You may wish to consider the amenities in the area as well as transport links, job opportunities and access to schools, depending on your target market.
You should also consider the rental yields in the area, if you plan on developing properties that are available to rent, or will be purchased as buy-to-lets. This ensures that you, or any investors that buy the units, receive a good return on investment. Investors will be looking for locations with high rental yields, so providing these opportunities ensures that your developments are in high demand. Locations with a consistent flow of tenants are usually the highest yielding – areas with a considerable student population are a great example of this.
Other important factors include the investments that are being made in that area, as well as population growth. If an area is subject to regeneration and significant investments, it usually means that the city becomes a desirable place to live due to its thriving economy. As for population growth, this shows that there is a demand for housing in the area.
Those that are built with the market in mind
It might be tempting to put your personal taste first, but you should avoid the temptation to do so and let the market inform your decisions. As such, you should focus on creating a development that appeals to the broader market and that will meet the needs and demands of your target demographic. It’s all about striking the right balance between sticking to your budget and being sensible with your finances, whilst also ensuring that the development is of high quality and will appeal to the market that you’re targeting.
Here, it’s important to do your research about the market, looking at which locations are desirable, what tenants look for in the area, and any changes in the property market that may impact your development. Putting the needs of your target market and quality first will set you up for success.
Properties that are suitable for sale and rental
Your aim might be to sell your development, yet considering the feasibility of the development and the potential rental income it may generate is still important. Focusing on creating a development that’s suitable to sell or rent allows you to remain flexible in your strategy. For instance, if market conditions mean that house prices increase and there are few buyers around, then the demand for rental properties increases. Then, you could capitalise on this situation if your property is built with the rental market in mind. Remaining flexible and in the know about market conditions that could affect your strategy or your development is important for being a successful property developer.
Successful property developers will be driven by quality, as opposed to quantity and a focus on numbers – that’s what makes the development a success too. All too often, many developers will try to maximise the number of units on a property and, as a result, the quality of the development is compromised. If you do not deliver quality developments, you risk losing a lot of money in the long run – people will soon realise, and this could seriously affect your reputation.
To be known as a credible developer and to make your development successful, you need to prioritise quality at all times – delivering quality should drive your decisions. This means including key features and amenities into the development to make it an enjoyable space to work and play, whilst also ensuring that the building is safe and secure. People want to live or work in an environment that isn’t just enjoyable, but safe too. Here at Salboy, we’re always putting quality first, whether that’s through our own developments or those that we provide funding for. We’re committed to assisting with the entire process to ensure that quality is maximised and never compromised.
Those that have been designed and built by experts
Successful developments will stand the test of time and that’s largely because they’ve been designed and built by a team of experts. When embarking on a property development project, it’s important to have the right people on your side. These types of projects are complex, and you need a highly skilled team to help deliver a quality development. This goes beyond the builders that are working on the development and extends to the lawyers, accountants, project managers, estate agents and the finance team working on the project – each person plays a vital role in ensuring that the development is a success.
When it comes to picking the right team, it’s important to do your research and to feel confident that they’re going to deliver. You should take a look at their reputation and previous work, as well as any case studies, testimonials and reviews to ensure that they’re reputable and reliable. This is especially important for the designers and builders that will be working with you. Their role is vital in ensuring that the development is safe and of high quality, which is crucial for its success.