Top 10 Questions to Ask Yourself Before Becoming a Property Developer

Making the decision to become a professional property developer and invest in property is no easy step. Is it one that requires a lot of thought, consideration and time to ensure you are making the right decision.

If you too are struggling to decide if property development is the right route for you, then the following FAQ can help put all your concerns to rest:

1.What is property investment?

There are many misconceptions about property investment and what it exactly entails. The most common route you will encounter – and hear of – is renovation, where you buy a property with the purpose of doing it up and selling it.

However, whilst this niche was profitable during the property boom of 2007, this investment technique unfortunately is less effective during economic downturns. That is unless you have got the cash to turn the property around fast and quickly get it back on the market.

The other route however – and the one we recommend to you – is buy-to-let. With buy-to-let, you can invest in property based on the areas tenancy demand and ability to produce positive cash flows, and generate month on month incomes simply by leasing your property development to tenants. There is no need to sell…

2.What makes property investment different to stocks, bonds or shares?

The fact that it will never go into zero values! Although stocks, bonds and shares can help you to experience annual returns of up to 25%, they are also prone to dipping down to -8% leaving YOU out of pocket.

With property it is a much different story. Even in a recession, properties can still produce annual returns of up to 25% – if you invest correctly – making it a much safer, more stable investment route.

3.Do I need capital to invest?

No. Equip yourself with the right strategies, and it is possible to invest in property using little if any of your money and purchase properties without putting your own home at risk.

Investment strategies such as No Money Down or No Deposit Down are specifically designed to help you invest with minimal costs involved. All you will have to worry about is your legal fees and stamp duties; yet even then it is possible to negotiate such property discounts that your property will essentially pay for itself.

4.Do I need experience?

Despite what the media would like you to believe, you don’t have to have prior property investment experience to make a profit from property.

The key to achieving long term successful investments is to: equip your property portfolio with the right investment strategies; negotiate the right property price discounts, but more importantly ensure that you only invest in properties which can produce the positive cash flows and tenancy demand you need.

Attending a property development course can help to equip you with such investment strategies. Just make sure that you thoroughly research these property development courses first, check their history/case studies and only sign up to a course that can offer you at least 5 investment strategies.

REMEMBER: Not all investment strategies will work in all financial climates, which is why having plenty of choice can come in handy.

5.How do banks lend money for investment property?

Unlike applying for a mortgage where your lending amount is based on how much you earn, buy to let investment is assessed very differently.

Here, all lenders require is that your property is able to generate 125% of its mortgage repayments through buy to let. Meaning choose wisely and it is possible to invest in bigger and better properties, than you normally would be able to if it was based on your salary.

6.What are the best properties to invest in?

There is no fixed rule to this exactly, although residential properties do primarily win in the investment stakes against commercial property and land.

When you are researching potential property developments, the key points to take into consideration are the properties tenancy demand; the mortgages deals available and the positive cash the property can generate. As long as there is the demand and the property can produce at least £300 in positive cash flows, then it doesn’t matter if it is a terraced, semi-detached or detached.

This information aside, economic circumstances can make one property type more popular than the other. During the recession for example, studies found that tenants preferred living in terraced properties compared to all other property types because they were better designed and more energy efficient.

7.What is positive cash flow?

Positive cash essentially represents the income left over from a tenants rent after the properties mortgage repayments have been deducted. So, the larger the properties positive cash flow, the more profitable the property is.

8.Is it possible to invest in all financial climates?

Yes. If you are looking to enter specifically into the buy to let investment market, then with the right investment strategies, brokers and negotiating skills, it is possible to invest come property boom or economic crisis.

Take the recent recession. During the last 2 years we have been confronted with property price discounts of at least 20%; base rates of only 0.5% and a tenancy demand that has increased by 24% alone during the last quarter of 2009.

However, even with the property boom of 2007, property investment was still powerful asset as it encouraged rapid capital growth which in turn prompted rental increases and larger positive cash flows.

The financial climate does not have to play a factor in your decision to invest; only help you to determine which of your investment strategies will be most effective.

9.Is it possible to invest abroad?

Your property portfolio does not have to remain restricted within one city, region or country. UK, USA, Europe or Australia… with the right strategies all properties can be transformed into credible property lets.

The only thing you should be cautious about when investing abroad is familiarising yourself with their property laws and investment regulations. Every country is formatted using a different system, and will employ different methods for lending, organising repayments and structuring property leasing.

10.Do I have to give up my day job?

No, far from it. The great thing about property is that you can easily research, invest and build your property portfolio in your spare time – for as little as 1 hour property per week – and continue working your day job.

You can even employ a property manager to take care of your properties, and ensure that your rent; maintenance issues and tenant problems are quickly resolved without need for your assistance.

How to Become a Successful Real Estate Developer

Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on…

1) Do Your Location Homework – did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It’s true – whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.

Take the necessary time to learn all about a town or city you’re considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. If there are inner-city redevelopment projects planned examine the real estate market in the immediate vicinity, if there are areas that are booming right now examine the immediate neighbouring areas for their potential for future prices rises for example.

Don’t follow the crowd – have the confidence to buck the trend and get ahead of the curve by positioning yourself in a market that is about to boom rather than in one that has already blossomed.

2) Know What You Can Afford – While it can pay to sometimes speculate never be tempted to jeopardise your own home. Work out your finances and be ruthlessly strict about what you can and cannot afford as a down payment, for mortgage costs and for the renovation and redevelopment of your next real estate investment. Only proceed within the confines of your tightly allocated budget and do not be tempted to over extend yourself particularly if competition in the property market is tough and the market is slow or stagnant.

3) Identify Your Target Market – Having identified your next location for property investment identify the types of people who buy into renovated properties in that location. Know who your target market are going to be and what they are likely to look for in a property in that location. If for example you’re examining inner-city spaces you might identify that your buyers will be young single professionals and that the ideal property type for these people will be luxury low maintenance apartments – seek out suitable properties with the potential for redevelopment into luxury low maintenance apartments and you will fulfil your target market’s brief…seek out large houses with substantial gardens in the area and you will have totally missed the market and potentially created a property that will not sell!

4) Renovation Not Rebuild – Know your budget limits and your personal skill restrictions. Do not consider taking on a property that is in need of a complete structural overhaul when your budget is tight or you do not personally have the time, skills or inclination to do the structural work yourself. Be realistic about what you and your budget can achieve and seek properties that fulfil that brief. Pay to have an independent and complete survey done on any property you are seriously considering buying before making a down payment to ensure that there are no hidden surprises waiting for you beneath the floorboards to eat up your budget in its entirety.

5) Manage Your Budget – With your survey in hand you can approach builders for quotations and seek out prices for fixtures, fittings, finishings and furnishings. Take the prices quoted and sourced and build your budget. Factor in ongoing mortgage and service costs and labour costs as well as your findings and structure and allocate your money accordingly. Watch every single spend and be ruthlessly strict with yourself and your builder. If at all possible have your builder commit to a contract with fixed finish dates and fees and stay on top of every single penny or cent every single day. At the end of each week tally up your outgoings and expenditure and ensure you’re not exceeding your budget. If you’re overspending rein it in or you will have to shave it off other areas of the development. Remember never to scrimp and save on finishing touches and always give yourself a realistic fall back fund in case of emergencies.

6) Appeal To The Widest Market – Forget putting your personal stamp on any property you develop – YOU are not going to be living in the property! You should already have identified your target market which will give you a good idea of the level and quality of finish expected, now meet those expectations without adding your own personal taste into the equation. By appealing to the widest market or the lowest common denominator your property will be attractive to the majority of buyers making it faster and easier to sell on and profit from.

7) Make Friends With A Real Estate Agent – Your greatest ally when developing property will be your real estate agent. Make friends with these guys and you will build a beautiful and successful symbiotic relationship in which you both profit to the maximum! Real estate agents are a fountain of untapped knowledge about the local market, who is looking for what property in which area, which additional features cost little to add but which push up the asking price and what a buyer expects from your particular property type. Get the facts from your real estate agent and then apply their advice. You will create a property they can market for top dollar and to the widest market – you will make more profit and they will make a bigger commission ensuring a beautiful and lasting friendship!

Finally, remember that when you’ve bought, renovated and sold on you’ll be looking for that next property opportunity and any real estate agent who you’ve worked well with will be on the hunt for suitable real estate for your next investment making any subsequent purchases that much easier to source.

Luxury Homes Created by Esteemed Real Estate Developer in Kolkata

Everything in life comes with a foundation. Walls have bricks and cement, tables come with wood and nails and on a larger note, a home is backed by its developers. The base that a family rests their trust upon is the name of the builder behind the residential project you choose. Hence, the reputation and popularity of a real estate developer is a vital checkpoint before buying apartments in Kolkata.

Here are the benefits of choosing a reputed builder:

  • Assures timely completion and possession

  • Allows better chances of home loans from banks

  • Ensures better living standards of residents

  • Avoids land-related disputes being legally sound

  • Sets a benchmark for quality

These are the most prominent of the lot. Amidst these, do not forget that a reputed builder has a vision and driving force of uplifting lifestyles. Some try to incorporate modern styles of living through their projects. Some try to make quality homes at affordable prices. Some try to combine both cost and quality, creating a haven for upgraded living in Kolkata.

Here’s where we see the emergence of Fortune Realty.

Fortune Realty – Creator of Splendid Homes in Kolkata

These real estate developers operate with an aim ‘to accentuate the beauty of life and enhance the quality of living’ in Kolkata. What sets them apart is their ability to comprehend what contemporary living entails. Each of their residential projects shine with this ideal and you can see this radiance through 3 of its current projects in the city.

Here are their projects that you should get acquainted with:

Fortune Heights

Barasat is a region that is a bit further from Central Kolkata. What if there was no hurdle is regards to commute? What if Barasat was actually a much-coveted address for modern homes? Comprehending the potential of Barasat, Fortune Realty came up with a way to use the advantages of the region. This resulted in the creation of Fortune Heights. Here are the highlights of the project:

  • 5.8-acre project with 70% open area

  • Well-crafted 2,3 and 4 BHK apartments

  • Modern amenities such as swimming pools and gym

  • 10 mins away from main schools and colleges

  • Top security features such as CCTV, intercom, etc.

  • Hospitals like City Life and Eco Hospital nearby

  • 2 kms from Barasat Railways Station

  • 12 kms from NSC Bose Airport

Fortune Township

Along with Fortune Heights, this project is also situated in Barasat owing to the benefits it offers to daily life. This project goes a step further by adding commercial complex facilities that include a bank and ATM, grocery store, laundry service, etc. Bringing the best of the outside world right to your doorstep, take a look at the highlights of their flats in North Kolkata:

  • Covers 8 acres of land with 21 blocks

  • Offers roughly 2 lac sq. ft. of open area

  • Possesses 75,000 sq. ft. of landscaped gardens with ponds

  • Spacious 2 and 3 BHK apartments

  • Good schools and hospitals nearby

  • 10 mins from proposed Barasat metro facility

  • Advanced amenities like gym, community hall, games room, etc.

  • 20 mins from NSC Bose Airport

Fortune Estates

A product of luxury, Fortune Estates is conveniently positioned off Alipore. In fact, it is the first planned ‘green’ building in South Kolkata. It is within walking distance from Rashbehari Crossing, where every vital necessity is within reach. It’s luxury apartments in Kolkata are open from all sides, adhering to Vaastu Principles. Have a look at its important features:

  • 4 BHK luxury homes of 3,000 sq. ft each

  • Wide balconies and maximum cross-ventilation with homes

  • The project comes with 70% open space

  • Top-notch amenities like AC lounge and gym

  • 5 mins away from Woodlands Nursing Home and B. P. Poddar Hospital

  • 2 mins’ walk to the nearest school – Sri Sri Academy

  • Advanced security such as video door phone, etc.

There are countless first-time homebuyers spread across the city. Each of them is bound by one common goal – to search for that perfect apartment that satisfies their needs. As you can see, each of the projects developed by Fortune Realty comes with the promise of a better lifestyle. A good home does not have to be a dream anymore. Integrating the best of the best in these projects, you can choose from their three residential projects in kolkata.

Blending modern-day conveniences with the essence of nature, Fortune Realty is sure to win the hearts of more in Kolkata.