If you’re like most people, you’ve had the dream at one of two crucial points. Either you just sold your own property and made a small fortune despite doing very little work on it while you owned it. Or maybe you’ve seen one of the popular TV property shows where a couple of amateurs blow their budget, make a series of rookie mistakes, and still make a small fortune.
Yes, life as a property developer appears romantic, and it’s probably better than the daily grind you’re currently experiencing at work.
However, few jobs are as dangerous as being a property developer. Where else would you be asked to invest millions of naira in a project, devote months of hard work, and then discover whether or not you made a profit? Even starting your own business isn’t that risky because you can track your profits along the way.
The reality is that becoming a full-time property developer is extremely difficult. The profit you made on the sale of your previous home may have resulted from the expansion of the housing market while you owned it. You can’t rely on that as your primary source of income.
And, as a property developer, you rely on making enough money from a property to cover your living expenses for a few months while also helping to fund your next purchase.
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So, before you quit your job and start looking through the windows of local estate agents for suitable houses to fix up, here are a few things to consider.
First and foremost, are you truly suited to this? Many of us are risk averse, which is why we enjoy going to work and earning a consistent salary. Knowing you have a monthly income makes it easier to live your life.
Being a property developer means giving up a steady source of income (unless you decide to rent your properties out, anyway). And the financial risks are increased. If you are unable to sell a recently completed property, you will not only be unable to feed your family, but you will also find it difficult to move on to the next project. This is not an insurmountable problem, but it is something you should think about before taking the plunge.
Are you still certain you want to proceed? The next step is to consider the market for which you intend to develop. Look around your neighborhood to see where there is the most demand for real estate. Is there a high demand for a well-connected area or a brand-new property? Four-bedroom detached houses for wealthy executives? Families looking for a lot of space for a low price? Retired people looking for low-maintenance bungalows close to shops?
Find the demand and develop for it. Try not to get too caught up in the developer’s fantasy. If you want to create the ideal home, start with your own. Continue to grow as a company.After you’ve completed your targeting, it’s time to get to work. You should be prepared to do as many unskilled laboring jobs as possible in your projects. In fact, if you want to be a successful property developer, you should be willing to learn new skills. It’s an important characteristic that will help you maximize your profits. Just make sure to hire qualified people for the skilled work.
Finally, do whatever it takes to get a quick sale at the right price. It’s the goal you’ve been working toward your entire life.Do you still want to be a property developer? Then best wishes and enjoy your new life!
