General tips for property development

Taking on a renovation project requires a lot of time and effort. Phil Spencer shares some of his top tips to make the most of your project.

15th October 2007

  • Always be realistic about the level of project you can take on. Be aware of your limitations.
  • Make sure it really is a deal before you commit to a property. Calculate whether the potential sale price less the sum of the purchase price, administrative costs and budget give you a profit margin of around 20%. If the sums don’t add up, walk away. A better deal could be just around the corner.
  • Decorate for your market – avoid stamping your personality on the space and make only those improvements necessary for your development. Really get to understand the needs of your target market and renovate accordingly.
  • Always work out a realistic budget and then do all you can to stick to it – to lose track of your budget is to lose sight of your profit.
  • Include a 10% contingency fee into your budget as an essential part of your costings.
  • Ensure your work adheres to building regulations every step of the way.
  • It isn’t always how much you’ve got to spend on a refurbishment that counts – it’s what you choose to spend it on that really makes the difference.

© Phil Spencer