In real estate market, you can pursue many fields as your career path. One of the most desired fields is real estate development where developers work.
Some people may think that this is kind of complex thing to do. There are many steps and challenges before you successfully reach your goal.
However, you can also make it simple and accessible. Besides, real estate developer is a career where anyone can pursue with different background and discipline.
Of course, you need to learn more about real estate development and how it works before jump into the market.
What you need to know about real estate development
First thing first, you need to know why you should choose property development.
People are interested in this subject due to various reasons. In general, you can save money because your project could only cost 20% below the market. Then, you can also gain profit from the development.
If you decide to rent your property, you will get better rental return. Through property development, you will also gain better leverage.
The last but not least, you can earn tax benefit from new property. After knowing why you should choose property development, here are things you need to know about it:
- Property development is wide range of activity and process from purchasing land to building and developing. It means, it involves continual reconfiguration of the built environment to meet the needs of the society. Most project of property development especially in real estate is small to medium sized residential development projects.
- When you decide to pursue career in real estate development, you aim to become property developer. There are many challenges you are going to face since this is not a very simple project. You need to have positive traits such as patience, creativity, ambition, as well as education.
- Real estate development requires more knowledge of the developer because the project is complex. Therefore, real estate developer often start their career from different path. For example, most property developers started their career as real estate agent or entrepreneur. Throughout the years, they gain experiences and knowledge which can help them pursue a career as property developer. Things you need to learn include the markets, finance, economics, construction process, planning, etc.
- Real estate development requires a team of reliable members include real estate agent, finance planner, lawyers, accountant, development managers, property strategist, etc. thus, the first thing you need to do when you decide to get in real estate development is to talk to the right people as mentioned before. They will help you to get into the right direction.
- There is one of the most important aspect in real estate development. It is the cost of the project and profitability. Keep in mind that financing property development is more complex than earning finance for a simple investment purchase. To start off with it, you need money saved up quite a bit. Most banks and lenders want establish track record of you and your team.