Buying a property at a relatively low price, developing it, and selling it at a profit could possibly be worth the time and effort that you put into it. The more research and wise decisions you make at the beginning, the more likely that your development project will be successful.
There are different types of property development that you might think are suitable for a particular property. The easiest is to update and renovate a structurally sound building, which just needs a decorative facelift. As you’re not moving walls or pouring foundations for additional rooms, you don’t need to spend a lot of money to hire engineers and architects. If, however, you plan to convert a house into a number of different apartments, or to combine a building of apartments into a single-family dwelling, this is obviously much more complex. You may need to apply to the local authority for permission to do this, and your request might not be granted if the authority feels that it would negatively affect the rest of the neighbourhood.
Change of use is when you change a business premise into a residential dwelling, or to change a house to, say, a beauty parlour or restaurant. Again, you’ll need permission from the planning people to make sure you’re not destroying the character of the area. Most people who apply for a change of use for a property have the contract to purchase the building worded to say that only upon confirmation of the relevant permission will the deal go through. Only after permission is granted, will money actually change hands.
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