Is Now The Time to Get Into Property Development Considering the Unstable Market Conditions?

It shouldn't be a matter of market conditions which affects your decision to develop or not. Now is as good a time as any to start development, as long as you follow some essential factors.

You have to make sure that your figures stack up. Now is not the time for impulse buying and impatience.Work out your figures, check them once and then check them again. Make sure that you account for today's market when researching your resale value. An advisable profit margin to aim for would be 20%, but you must stick to this margin and don't get too ambitious once you have started your project.

Your figures must also be able to cope with a rise in interest rate. Although the interest rate is currently at 0.5%, it will not be that way forever. If it starts to rise, your budget should be able to incorporate this rise. Obviously it will cut into your profit margin, but in these current conditions it is a lot better to make some kind of profit, rather than a loss through negligence.

You also have to consider the type of development you are committing to. It is advisable in the current market conditions to choose one of two kinds of projects. Firstly is a project which will not take long to complete and therefore produce a quick turn around before the market drastically changes. The other would be a more involved long-term project which would take at least 2-3 years to complete, giving the market time to recover.