Advantages Of Becoming A Real Estate Developer
There are many investors who accrued a large amount of wealth through the business of real estate development and the field is one that is constantly expanding today. Therefore if you too are considering the career prospect of turning to real estate development, you will be able to make a great life out of it, if you do this right. Before you start though, it is important that you have a clear understanding of the benefits that you can gain through this career path.
You will be able to make savings
You as a real estate developer will be able to get your properties at about a saving of 15 to 20 percent as compared to the retail cost. This means that for example, the New Executive Condo Woodlands Avenue will be yours at a cost which is lower than the market rate even though the area and the property might be in high demand. The main reason for this is that as a real estate developer you will not be paying in anything for GST, marketing, commissions for agents and a margin for developers. These costs are always added on when buying real estate at the retail value.
Your profits will be good
There is a reason that there is big risk in this business. There is also big money and by big, it means the kind of cash that can either make you or break you. What you need to do is to keep a vigilant eye on the market and approach to sell off the correct development projects at the most optimal time and you will be able to see the profits double. For example if you have a room price list and you observe that the area is in very high demand, you can start moving your real estate development in that area to your customers. You will be able to make the profit easily because you are swimming with the current.
You will get financial aid easily
Once the development project has been competed, you will have the opportunity to approach financial institutions such as banks in order to re-mortgage the units. The financial companies ideally will agree to give you about 80 percent or maybe slightly more of the retail value of the units after they have been completed.
You will have a higher return on the rentals
The rents that your tenants pay you is at the retail pricing. They do not know about the fact that you had to spend considerably less than the retail pricing as your expenses on the project. Therefore, you will be making a lot of profit through rental as opposed to somebody who also paid the same value as the tenants to acquire the property. In simple terms, you will be definitely covering your expenses.