Have you ever wondered how you started this extremely difficult property development business in 2021? I've seen a recent trend of aspiring developers looking for overviews and references
Real estate business development process, they want it simple and easy to understand. Millennials way.
This may be partly because much of Indonesia's property market is flat or down, and these property investors are looking for opportunities to generate capital growth at a time when overall growth is slowing or nonexistent.
That's why I've created a comprehensive guide covering the basics of real estate development today.
Why become a real estate developer?
I know why a lot of people want to know how to become a real estate developer because when you become a real estate developer, if you do it right, you get:
Save money - your project costs 20% less than market value
Make money - you can get huge development profits
Get better rental returns - this helps pay off your mortgage
Get Easier Financing - While financing a development is a bit difficult these days, once it's done, you have the potential to borrow up to 80% of the property's value, which may well exceed your costs, giving you a better impact.
Get incredible tax benefits on your new property.
Start With Who
Who should you talk to about your upcoming business?
Well, you've decided that real estate development is the smart choice for you, and you're ready to explore your options.
So who should you contact?
Who will explain everything you need to know and show you the way?
Depending on the complexity of the project, you may only need some or all of the following team members:
- Realtors - but remember, their job is really just to sell you properties, they can't even give proper advice on "development" properties - it's up to you and your team to decide.
- A financial strategist provides you with development financing - distinct from investment financing
- Accountants - to help you determine the correct ownership structure
- Attorney - assists with all contracts
- Urban planners and urban designers
- architect, designer or draftsman
- Engineers - Building, Construction, Transportation, Acoustics and Environmental Experts
- landscape architect
- contractor
- Project Marketing Specialist
- development manager
- project Manager
- construction manager
- quantity surveyor
- Property Strategist - This is probably your most important point of contact. A real estate strategist's role is to help real estate developers research, find and negotiate real estate purchases; maximize investment returns through real estate investment management, and understand the financial maze. Metropole Property Strategists are a great place to start - experienced teams can provide a more structured and predictable approach to property development.
Project Cost and Profitability
This is one of the most important aspects that must be considered before you invest in developing a property business.
The important question to ask is
Can I do this development and will I make a valuable profit?
Before you start any development project, it is very important to first determine how much you can borrow and how you will be able to manage all the costs associated with the development.
That's why it always advises you to have financial pre-approval before you start.
And that's the How To Start a Property Development Business in 2022 from us which might help those of you who are just starting out in a property business. We hope this article was helpful and useful. Thank you for visiting our article. For additional purpose we are translate this article into english.