Investing in property can be highly rewarding, not only in terms of profit, but the restoration and refurbishment of existing buildings is extremely fulfilling. Neglected buildings can be renovated to transform and revive existing buildings and they present attractive opportunities for residential development. There are important factors to consider during your property acquisition such as:
- the building condition – Does it require any work to the external fabric? Are there any areas of failure or concern? Are there structural issues that need to be addressed?
- the potential for development – How can I make this worth more? Can the property be sub-divided or extended?
- the financial viability – Is there a market for what you want to create? How much will the construction cost? Do the numbers stack up?
You want a return on your investment and a financial appraisal will help you determine whether a development is worth progressing. The financial viability of a project is often assessed using the purchase price, anticipated construction cost, and the expected end value. Selecting the right property is crucial and you must be meticulous in your research and tenacious when buying.
It is important to define your property development strategy to understand both target markets and where the opportunities are. Is this likely to be a long-term strategy such as buy-to-let investing, or are you developing to generate quick profit?
Property development is dependent on market conditions and it is important to have the right exposure and tailor the development to suit the target market. Your property development strategy will have a bearing on the level of finish, budget, and time scale for the project.
Professional advice from an Architect who has experience in property development can be invaluable. Why not invite an Architect to view the property and discuss initial ideas? They will be able to help you assess any opportunities to sub-divide or extend the property. Engaging an Architect at an early stage can help identify potential risks, constraints or problems associated with obtaining the relevant statutory consents.
An Architect with experience in property development will use their knowledge and sound judgement to help you answer that key question – Is this building right for me?
Once you have purchased a property you need to work towards the best design solution and apply for statutory consents – next week we discuss: Concept and Detailed Design.
Kristi Greer, Architect
Property Developer : Seven Hills Property
Design : GLM
Builder : True Build
Completed Project Photography : Squarefoot Media