Matthew Cullum Property Blog
In this article we will be covering the area of property development specifically in the sense of construction and building. Firstly the main concern of a developer is to have the initial funding for a property deal should one arise. There are number of avenues that you can go down to to get the funds to purchase property the most traditional being the bank or development funding route. Nowadays there are many property development specific funders that will provide quick and affordable funding options and the banks have become increasingly difficult to deal with and stringent in their checks and processes.
There are also many mid-tier funders which can act quickly but are in the banking sector and therefore can provide the safety and security once the funding is utilised. Many developers prefer to go with the banks as there are always risks with going with a small company which provides funding, these risks namely are that they could have issues midway through the development and the contracts usually give the funder the option to pull the funding. There are also many Challenger banks which provide property development funding and they are usually also very competitive and out quickly when you need them. The Matthew Cullum blog will provide more details on specific options available in this area on a regular basis.
There are also quite a few private funders in the industry which may have higher rates but are much more flexible with their criteria. If you have a deal that needs to be done very quickly these private client funders can act accordingly and often have less stringent criteria and checks prior to the deal being done. Another key consideration prior to finding a development is utilising the advice of a solicitor and an accountant as these are crucial areas which must be covered before you embark on any deal.
Having a good solicitor can be priceless in the sense that the setting up of property development deal we usually involve having a limited company or some form of formal structure to hold your own the property. This has many implications when it comes to ownership as well as taxation which will come later in the development and should also be handled by a good accountant. There can be many significant tax advantages to using a limited company or LLC and these must be addressed with your legal and accountancy professional.
The Matthew Cullum blog will always provide help and resources to property developers on a regular basis and these cover areas such as we’ve explained previously. The benefits to developing property with these key considerations in mind can be very fruitful and if it is done right you can make significant returns from developing property. He will need a good construction team to actually commenced to build and you should run your fingers through thoroughly before embarking on any construction program. If you are using a contractor you should put the project out to tender and that your construction team carefully with key considerations on cost and also the track record of the company. Many properties of property developers fall down at this hurdle and choose the wrong contractor or subcontractor and get into issues later on as there are delays and potential hurdles in the field process.