6 mistakes made by amateur property developers

If you’re just beginning to dip your toe into the world of property development, there are a few issues you should be aware of to ensure mistakes aren’t made along the way. Take a look at the six most common errors made by amateur property developers below and reap the rewards once your property is ready and the process has gone smoothly, later down the line:

Choosing cheap contractors
Like they say, ‘if it’s too good to be true it probably isn’t’. A builder or contractor offering exceptionally lower prices than their competition should be avoided at all costs, simply because cheaper doesn’t always mean the same high quality. A poorly done job will also reflect poorly on you and your property development portfolio later down the line, so ensure you always get the best price but one that isn’t ridiculously lower than what is expected.

Low quality supplies
Much like your contractors, the supplies used when completing any renovations on your property should also be high quality. Cheap flooring and paint will sell you out over time and tarnish your reputation as a high quality developer.

Wrong location
Jason Harris, First Urban Group’s Director, is an expert when it comes to location and property development. His company scouts out the best land acquisitions for developers to use and therefore understands what prospective buyers are looking for, these things include:

• good schools in the local area
• shopping facilities close by
• close proximity to main roads and motorways
• low crime rates.

Tight deadlines
Not leaving yourself enough time to complete a project is another common mistake inexperienced property developers make, which leads to stress, having to find more budget to pay contractors for longer periods and losing out on potential investors or buyers who can’t wait.

Not obtaining planning permission
An attic conversion or back extension may add value to a home but it will be rendered useless when the council demands it is removed because you didn’t take time to obtain permission to build it. This is a common mistake many property developers make, especially those who have set themselves tight deadlines (as noted above). It can ruin the progress of a build, lose you money and leave you with disgruntled contractors who have to see their hard work taken away.

Not taking out insurance
Property developers’ insurance is so important. It protects you if something should go wrong with your investment to ensure any assets you have put into the project are safe. This insurance covers issues such as construction risks as well as repairs to damage that may occur while renovations are carried out. Look for Home Builders insurance and be sure to seek out quotes before signing anything.

Consider these mistakes before taking on your next property development, to ensure you don’t run into any issues further down the line. Good luck!