Why do you think Property Development has become so popular?

[Scooby_Dee]

I hope this is in the correct section.

I would just like to ask those of you who property develop or know of those who do why you feel it has become so popular?

I am writing about this topic for my dissertation and would like to know others thoughts on this.

I would really appreciate some input on this.

Thanks, Dee

[Dan_Manchester]

Sarah Beany

[Kaz]

Homes under the Hammer

[brian]

Because of a slew of popular TV programmes capitalising on the property boom, showing how people could make a lot of money during the boom.

There is no longer a boom.

[Sonya]

Agree with the popular TV culture feeding the property enthusiasm, also because of the money that people got out of it. The money made could equal a year's salary

[Dougie_tps]

Suddenly people have realised that property development offers the easiest way of making decent profits in a relatively short period.

What other commodity could offer:
(a) the chance to potentially almost double your initial outlay in 6-12 months?
(b) the facility of being able to borrow up to 75% of the purchase price (highly geared) and
(c) doesn't take all the work of starting a business with a new idea?

Property is the only means of investment that the owner can significantly add to the value of.

[Michelle Alden]

In a recent US survey, The 2010 National Association of Realtors (NAR) Profile of Home Buyers and Sellers, American home buyers affirmed a long-term view of home ownership. The consumer survey confirmed that the typical American seller is experiencing positive returns, and that the vast majority of homeowners see their property as a good long-term investment.

According to the NAR survey, typical American sellers had been in their home for eight years. First-time home buyers reported that they plan to stay in their new home for a minimum of 10 years, and repeat buyers plan to hold on to their property for 15 years. The overall results confirm two things: home ownership encourages stability, and the longer you hold on to your property, the better the returns.

[Rob O]

Hi Scooby Dee

An interesting topic for a dissertation and one which will hopefully provide scope to include many real-life case studies, as examples abound!

I must agree with Dougie TPS - his reasons are entirely valid and are the reason that many people get involved in development.

However I think that there are many more who attracted by the lure of "easy money" (often as a result of watching TV programmes) and do not appreciate the concept of addiing value. Many of these have been successful in spite of their lack of knowledge or ability, simply due to a rising market. Under present conditions though, you really have to know what you are doing in order to make a decent profit!

Regards
Rob