First time property developer....needing tips.

[Plumber Newcastle]

Hi guys,

I am new to the forum and new to the world of property development so looking to introduce myself and hopefully make a few contacts who can offer sound advice or experience. (fingers crossed)

I have been in the construction industry for 36 years as a Plumber and I am looking to get into property in my own right in Newcastle upon Tyne and the surrounding areas.

My company is multi-skilled so the only trades I would need to hire in would be plasterers and electricians (for the time being) and I know the development side of the projects will not pose any problems for our team but I dont really have any experience in buying or selling property, legal fees etc...is there anything you guys can think of that I could overlook on this front when first purchasing a property? (I am currently viewing properties at the moment).

Regards,

[Dougie@tps]

Hi

There are a few things you will need to get sorted out first before you buy the property. Many first time developers buy with their hearts not their heads.

Type of property (ie flat, semi, terraced etc) should be considered in relation to the area you wish to buy in (meaning, for example don't convert a large house into flats unless you know for certain there is high demand for them in that area), speak to estate agents regularly to strike up a relationship so that when something suitable does come on the market you can act quickly. They will also tell you what properties will sell very quickly once the work is carried out.

As for budgeting, a basic appraisal should be carried out on your shortlisted properties so that you don't pay more than it is economical to make the project work. As you get more experienced, you will get a feel for how it all goes together (financially and legally).

Legal and professional fees should be the same as when you buy or sell your own home. Except obviously when there is more complex issues to deal with (like full building surveys or complicated legal aspects).

Have you established exactly how much you can spend on a first development? Obviously it will depend on the scope of work needed to be done; however, you are very well placed indeed to assess the cost of the work. Many people in your line of work are very successfull indeed in property development because they know precisely how to get good quality work done without spending unnecessarily.

Doug

[Plumber Newcastle]

What are your contact details? I cannot see them