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Smart Property

How to Invest in Property Development Projects

Smart Property

Investing in property development projects can be a daunting task as it’s hard to know where to start or if it’s even worth it. Many people even cry at the prospect of possibly having to take out another loan, and understandably so. Then of course there’s the planning, the research, the budgeting, and assessing possible risks.

It really doesn’t isn’t so bad, and we’ve come up with a list of 5 things you should look out for and think about when looking for the right property development company to invest your money into.


1. Make some goals.

It’s very important to be clear about what your long and short-term goals are. Would you like to see yourself retire in 5, 10, or 15 years? Having your goals written down and in the back of your mind will help you to be on top of your game when making inquiries as you shop around to different companies. It’s also important to take a look at where you are now and compare it with where you want to be.

2. Understand the risks.

Okay, so you’ve got a decent amount of money to invest, but how much should you really invest and where?  You really want to get clear on numbers and get educated on the possible risks. It’s important to factor in what kind of risk you could handle and you’ll want to look for companies that are transparent in all aspects of the process. When you ask a question or make an inquiry, you should expect to hear an honest answer.

3. Look for a no-debt investment company.

Despite what most people suggest, borrowing to invest in property development may not be the best option for you. The reason for this is, when you borrow, you are not necessarily going to receive what you could be receiving (providing you do have a return on you investment) because a lot of the payout will go back to the banks in interest and fees. A company that offers a no-debt model is looking out for your best interest because it wants you to get the most out of you return.

4. Make sure your company of choice has their results audited.

To be sure that a company is legit and follows the industry standards and regulations, make sure they can provide the results for their annual audits. We cannot stress the importance of transparency enough!

5. Make inquiries.

Make a list of potential companies that you’re interested in working with and make an inquiry. If they’re listening to you, they’ll let you know whether or not what they have to offer matches your goals. When you take the time to sit down with someone to ask the questions and to show them your plan, it will help you to see the big picture a lot more clearly. 

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