property development guide
   |   Home   |   Contact us    |   Link exchange   |    Article   |  



 
 

www.plan4development.co.uk information resources, UK, development, sustainable development, building a home, building an extension, exempt structures, planning permission, planning approval, building control advice, building guide, one stop shop for all development advice. Locating development information, home improvement advice, sustainable development advice, guide, planning & building control advice with other building information on the web. UK information resources directory for development, building houses, sustainable development, extensions, conversions, internal alterations, obtaining local authority consents, planning approval, building regulations approval, listed building consent, exempt structures, exempt buildings, permitted development with all other aspects of developing land on the web.

 
 

 
 

insurance
finance
credit
loans
mortgages
compensation
business opportunities
home businesses
extra income
pension planning
making money
saving on tax

affiliate marketing
web site traffic

property investing
property refurbishment
construction
development
building
buying overseas property
moving house
home letting
buy to let
home improvements
furnishings

shopping
auctions
home electricals
computers
gadgets
travel
sports

cheap telephone calls
mobile phones
freephone numbers
cheap utilities

wedding
divorce
cancer
funeral
death

health and fitness
the great outdoors
swimming
lifestyle
party time
betting

new car
car insurance
car hire

 
 


 
 

 
 

Property development


Raising Money For Property Development

By Don Suter

In addition to finding the right property, one of the most difficult aspects of property development is being able to fund the purchase and re-development of the property before putting it back on the market.

Many would-be property developers have the skills and flair for property development, but lack the financial clout to put these into practice. So what are the options for funding a property development?

Property development mortgage

A good place to begin is to talk to your bank or building society about taking out a mortgage to fund the development, however most high street mortgage providers are not fully equipped to service the needs of property developers and are more likely to refuse finance.

A better bet would be to try one of the niche mortgage providers who specialise in providing finance to property investors and developers.

Mortgages provided by these companies are often repayable on an interest-only basis and in some cases it is possible to borrow up to 100% of the development cost, however the developer is often required to own the land on an unencumbered basis.

It is also worth noting, that as the risk increases to the lender, the interest rate on repayments will also increase.

Using other people's money

A cheaper way of raising money may be to borrow from other people, such as friends, family or colleagues at work.

The core advantage is that you are less likely to be saddled with expensive interest rates, but it is important to keep all business dealings above board and well documented, as it is all too easy for relationships to go sour if problems occur with the development.

Seek private investors

Another approach that the savvy property developer might take is to ask people to invest in the development, so that they can enjoy a profitable return on the sale.

This removes much of the financial risk from the developer and means that money can be spent on business expenses and not repaying high-interest loans.

Whilst selling a stake in the development is an attractive idea, it does require a good level of marketing skills by the developer to find and convince potential investors to part with their money.

Start small

It is still possible to find low cost properties around the UK, which are much easier to finance, before working your way up to larger, more profitable developments. Growing your property development business in stages allows you to gain valuable experience, reduce your risks and helps you to build up cash reserves to invest in future developments.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development

For more information, please visit our property investment and property development pages.

Article Source: http://EzineArticles.com/


When searching for property information there are some useful keyword phrases that should help in your research....

Property Developer Secrets

Property Developer Secrets; the UK's best property development, developer and buy to let advice on how to make money without risk uk property development, developing, ladder, investment properties, buy ...

Pettifer Group Property Development Land Promotion Design and Build ...

Pettifer Group Property Development Management and Consultancy in the UK Pettifer Group Land Promotion Design and Build Construction Planning in UK Property Development Construction Planning ...

John Box Property

Land Assembly & Property Development 9 Tretawn Park, Mill Hill, London NW7 4PS Tel 020 8959 5865 Email land@johnboxproperties.com website design ed and built by JetLabs Ltd

Property Investment Workshop - How to invest in property with "no ...

... now feel brave enough to take the first steps." Hello Sunil, I had been thinking about property development for the past two years and frozen at the point of "where do I start?" I now feel brave ...

Commercial Mortgages: COmmercial mortgage Mortgages for commercial ...

Commercial mortgage and property development finance. We are able to source a wide range of innovative and competitive finance packages, secured against a variety of commercial property. mortgage ...

Commercial mortgages & Property Development Finance UK - Property ...

... development finance broker brokerage UK For Commercial Mortgages, Commercial Property Funding, Property Development try Sterling Capital Reserve's Property Funding. Online Enquiry Form or FREEPHONE ...

Best Property Services - Chartered Surveyors and Estate Agents

... half of the province. Specializing in Residential and Commercial sales as well as property development. property in Northern Ireland, property in Ireland, property in newry, estate agents in Ireland ...

Land development and property development from TSW Plc

... property investment, land development business opportunities, buying land and land sale, property development company and land investment company business opportunities ,business opportunity ,buying ...

Property Investment London and Buy to Let Development : Obbard Home

... London from Obbard. We specialise in prime location central London residential property investment including development, refurbishment and buy to let management services London property investment ...

Overseas Property for sale in Malta, Homes Abroad for investment in ...



DISCLAIMER - Please note that all articles on this web site does not constitute professional advice. All articles are intended to provide a general view of many topical subjects from a variety of sources. We are not responsible for the content or any sponsored links that you may choose to visit from this web site. We suggest you to consult a solicitor and your doctor for advice relevant to you own situation before making any important decisions.  The author is not an expert in any given field. By printing, downloading, or using you agree to our full terms. Below is a summary of some of the terms. If you do not agree to the full terms, do not use the information. We are only publishers of this material, not authors. Information may have errors or be outdated. Some information is from historical sources or represents opinions of the author. It is for research purposes only. The information is "AS IS", "WITH ALL FAULTS". User assumes all risk of use, damage, or injury. You agree that we have no liability for any damages. We are not liable for any consequential, incidental, indirect, or special damages. You indemnify us for claims caused by you.

 

|  © Plan4 Group 2005