Development is an amazing strategy where you can make a lot of money. In the short video above, I talk about the 6 houses I built as part of a joint venture. I bought the land for £330,000. The build cost was £500,000 and the end value was £1.35 million. It made a nice £350,000 profit! Property development is a big part of the property industry. If you are into property but haven’t started getting into property development yet, now is the time to begin thinking seriously about getting involved.
I know a lot of you are interested in this topic, and I want to speak to some of you guys that are serious about learning how to get into property development. Later on I will explain how to get in touch, but first here are 3 reasons I am in the development game (and why you should be as well).
1. Bigger Profits
Property investment is certainly a profitable business. Buying houses and renting them out; turning houses into serviced accommodation; letting out HMOs, etc is an amazing business model. You can become financially free (i.e. making the equivalent of your active income from passive sources) doing these things and even ultimately financially free (i.e. having enough passive income coming in each month to cover the lifestyle you want). However if you want to become truly wealthy, property development is an excellent means of doing so.
Development done well generates massive profits and is something that can scale into a truly large business. There are plenty of huge companies in the space, so the sky really is the limit in this part of the property sector.
2. Bigger Projects
I think it makes sense to ensure that each of your projects is bigger than your last. So if you start with a normal buy-to-let, for example, you might want to make your next property a multi-let or an HMO. In reality, there is a pretty similar amount of work required to complete a smaller deal as there is to complete a bigger deal; therefore, as soon as you have the experience you should move upwards. Doing this allows you to maximise your returns and ensures you are always progressing.
However, if you follow this strategy you will soon find that the next biggest project is development. In actuality, it is just a natural progression from buying and refurbishing existing houses. If you are ready for a bigger challenge that really pays off, development is for you!
3. Bigger Impact
Being a landlord is great because you are providing high quality accommodation to people. Refurbishing homes is excellent because you are taking run down properties and turning them into somewhere that people want to live in. But with a shortage of residential real estate in the UK, what is truly awesome is creating new houses for people.
The government wants new homes to be built and doing so helps them achieve their goals. First time buyers benefit from increased supply entering the market. Renters benefit from new homes as unmet demand causes rents to rise. Building new homes has a huge impact on the nation and doing so in the right way is something you can truly feel proud about! This is one big reason I love development.
Finally, as promised, this is how to get in touch if you would like to learn more about development. Jump on to my Instagram account here and drop me a DM with the word “Development”. It’s that simple! I hope to hear from you very soon.