How to Get Started in Property Development. What Are Your Options?

Finance paid in as little as 48 hours, subject to complexityExperienced team who understand your circumstancesFree advice and guidanceQuick response timesAvailable 24 hours a day, 7 days a weekFinance paid in as little as 48 hours, subject to complexityExperienced team who understand your circumstancesFree advice and guidanceQuick response timesAvailable 24 hours a day, 7 days a week

January 2, 20246 min readBy TIC Finance

Property development needs clear goals, solid research, the right finance and good advice. If you are starting out, a modest first project is usually a sensible place to begin.

In short

Decide whether you want short-term profit or a longer-term investment
Research the local market before choosing a project
Plan the finance, the budget and your exit before you start
Start small and take professional advice

What is property development?

It means buying a suitable property and improving it for its target market, usually to sell it on or rent it out. It can also be a way of building funds for later projects.

Types of development

Residential. New homes, renovations and conversions, including flats and houses in multiple occupation.
Commercial. Offices, retail and similar space.
Industrial. Warehouses, distribution centres and factories.
Land. Can be rewarding, but planning permission and local rules need checking carefully.
Special use. Hotels, care homes and retirement housing.

Get clear on your goals

Do you want a quick return or a lasting investment? Are you building a portfolio? What construction or property experience do you already have? Clear answers make every later decision easier.

Research and finance

Study the local housing market to decide what to build or convert and where. Then think about how to pay for it: your own money, investors or borrowing. Each has advantages and drawbacks.

Get professional help

Even experienced developers work with lawyers, surveyors and contractors. It keeps the project on track and helps avoid legal problems. Building a network also helps you find deals and resources.

Start small and write a plan

You do not need to begin with a whole building. A smaller project lets you learn without risking everything. Put together a business plan with your budget, timeline, goals and the steps to get there.

Costs people forget

maintenance and running costs while you own the property
project management and professional fees
insurance for liability, fire and flood
stamp duty, which must be in your budget
an exit strategy: sell, refinance or rent

Standard loan or development finance?

A standard loan usually pays out in one go. Development finance is released in stages as the work progresses and is inspected. Our development finance page explains how we can help, and where we cannot provide funding ourselves we may arrange it through our network, with your permission.

Important information

This article is general information and is not legal, financial or mortgage advice. We always recommend that you obtain independent legal and financial advice before deciding anything.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.