So, if you’ve done any of these projects before, you’re already a property developer (congratulations!). The point is that property development can sound big and complicated, but the reality is that it doesn’t have to be, and many people develop property without thinking of themselves as ‘developers’.
Development’s sweet spot is arguably ‘small-scale’ development, which sits one rung up the ladder from a house flip or refurb. Typically, you’ll be converting an existing commercial building into flats, creating between 5 and 20 units, and targeting a profit of between £100k and £500k. So, larger in scale than a flip but still small in development terms. Small-scale could also include new-build; however, you’ll ideally want to convert an existing building as opposed to building a new one because of something called Permitted Development Rights (PDRs). Unlike new builds, these allow commercial buildings to be converted to residential use without full planning permission. This shortens project timescales and reduces the risk of not getting planning, plus you don’t have to go into the ground where nasties can lurk. There are also numerous benefits of working with an existing building, utilising the existing foundations, walls, and roof, with services already attached to it. So, for a first project, I’d recommend a PDR scheme all day long. And once you’ve built it, you have the option to sell it or to rent it out.