Don’t Cater For Your Own Taste

The single biggest mistake most amateur property developers make is catering for their own personal extravagant taste when developing a property. And this problem usually occurs with those who have expensive and controversial taste. You have to realise that you WILL NOT be living in this property, this is a business project, and nothing else. You can save a lot of money by avoiding this trap.

Most homebuyers don’t want to purchase property that will need a full makeover, so it’s important to offer a property that is easy to work with. More importantly, even if buyers are willing to get their hands dirty, you need to show the estate agent and buyers the full potential of your property in order to maximize profits, and that can easily be done by careful and strategic developing.

As soon as you start catering for your own taste (as much as you like your own taste), you will essentially limit the market and affect the value of the property.

The whole point of property investment is to walk away with maximized profits, so every developer needs to be sensible when it comes to layout and decoration.� It’s important to know exactly where your profits lay.

Here are a few basic tips:

1/ plan out a realistic budget, and make sure you always budget for unexpected problems. It’s important that you start off with realistic figures, and remain strict with it. It’s ridiculously easy to let your spending habits take over, especially when you start catering for your own taste.

2/ when decorating, keep the colour scheme neutral throughout the house; keep your personal obsession with the colour pink out of the project. This way you’ll appeal to the majority of the market, and not just someone with a similar taste to yours.

3/ try to give the impression of space with light colours, expose plenty of natural light, and use clean lines.

4/ try to remain consistent throughout the house, in regards to colours and style. Buyers can easily be put off by inconsistent, chop and match jobs.

4/ spend money on quality kitchen/bathroom fittings, and not on useless props like state of the art fireplaces. Kitchens and bathrooms sell houses, fireplaces DO NOT.

5/ If you plan on doing work in the garden, keep it simple and healthy looking. Don’t make the maintenance of the garden look like hard work. Usually keeping the grass looking fresh, the patio uncluttered, and healthy growing plants/trees does the trick.

6/ Remember, this is a business project- unnecessary spending will reflect on your overall profit margin.

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