The National Homebuilding & Renovation Show, which takes place from 28 to 31 March at Birmingham’s NEC, may well be the place to provide you with ideas and inspiration.
The team behind the show is offering What Mortgage readers a pair of free tickets worth £24 to the event, which you can obtain by clicking on this link.
In the meantime, Michael Holmes (pictured), property expert for The National Homebuilding & Renovation Show, has some tips and advice for would-be property developers.
Think about tax
Efficient tax planning can make a vast difference to your returns, especially on exit. Buying and selling is classed as property trading. Buying and renting is classed as ‘property investment’. They are taxed totally differently and this has major implications you need to understand. Furnished holiday lets are classed as ‘trading’.
Consider the risk
If it seems too good to be true you can be sure that it’s not all it seems. Competition makes sure there’s no easy money. High returns are usually only available where there is high risk.
Due diligence
Never buy a property without seeing it first with your own eyes and getting a lawyer to undertake due diligence – especially at auction, as when the gavel falls, if your bid is highest you have exchanged contracts.
Don’t pay upfront
Never pay for building work in advance unless you are willing to lose the money if your builder or supplier ceases trading or vanishes.
Overseas projects
Do not buy into a market where you are unfamiliar with the local legal and planning system. The UK is remarkably free of corruption but many overseas markets are very poorly regulated and an unwary foreign investor is an easy target.
Projecting costs
Don’t underestimate build costs. Get a professional quantity surveyor to project costs on actual current market rates.
Get advice
Planning gain is the best way to add value, so investing in advice from those with specialist knowledge and experience to unlock value is an excellent investment.
A final thought…
Never risk more in the market than you can afford to lose. UK property is a one way bet for the foreseeable future, providing you can survive the inevitable troughs by not getting carried away in the peaks.
The National Homebuilding & Renovation Show, takes place at the NEC in Birmingham and runs from 28 to 31 March. Click here for tickets.
