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You are here: Home / Featured / How to Keep Your Costs Low When Property Developing

How to Keep Your Costs Low When Property Developing

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The property market is booming right now. With the Stamp Duty holiday extended until the end of September and the events of the last year being a huge factor in people rethinking their current living setup, many people are searching for properties that enrich their lives and meet their new requirements. 

If you’re starting out in the world of property development, you’ll want to attract some of these buyers with their newfound need for something different. However, you’ll need to strike the balance between creating a property that will be snapped up and spending a small fortune to get there. 

If you’re looking for ways to keep costs low while creating a property to be proud of, read on. 

How much does it cost to develop a property? 

When it comes to working out the cost of renovating a property, there’s a lot to consider. The age, size, and condition it’s in all play a huge part in determining how expensive things will be. For instance, older properties may need careful restoration, with additions that can be expensive. Alternatively, it may be that more space is required, so you’ll need to budget for an extension. 

According to Checkatrade, a renovation on a three-bedroom house can cost anywhere between £38,0000 and £74,000, on average. However, factors such as those mentioned above can impact the final cost.  

Ways to keep costs low

While some costs are unavoidable in property development, such as the cost of the property to buy and the fees you’ll ned to pay to sell it or rent it out, there are ways to reduce the costs involved in any renovation work. 

For instance, where possible, try to do some DIY. The big jobs will require an expert, but if you’re comfortable with tasks such as painting, tiling, and popping on a pair of knee pads to do the skirting boards, then you’ll find you make some significant savings. 

Another way to save is to call on the services of friends and family. If you have relatives who have joinery skills or have laid flooring before, calling on them to help out will save on the cost of hiring someone to do it. Of course, for hazardous things like electrical wiring or any gas work, you’ll need to hire an expert, but if you can get someone you trust to help with the other tasks, you’ll be well-placed on your road to renovation. 

As well as saving on services, it worth shopping around for materials and supplies too. Get some quotes and see where you can bag a discount. For instance, it may be that you’ve seen kitchen counters that would look amazing in your property. Instead of trying to budget for these, see if you can see anything similar for less. 

Would reclaimed and recycled materials work in your property? If so, this can be both cost-effective and great for the environment. Work surfaces, coffee tables, and even staircases made from recycled materials can be good for the budget and look beautiful.  

How will you try to save on your first property development project? 

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Julie Cheung / Finance Girl

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