It takes months to finish your property development project. Started from the pre-purchase stage to the finale completion, there are many things happen. However, you will be able to breathe in relief once your project done.
Of course, it is not the end of the story. Your destination doesn’t stop once you finish your project.
There are many thing to do after the completion. Every developer has different goal when it comes to property development. Some of developers aim for high profit while others aim for long-term income.
The goal you have in the beginning of taking the project will decide of what to do once the property development completed.
What to do with your completed development property
To know exactly what to do with your completed development property, you need to ensure your goal. Of course, you may change your goal. It is not uncommon for developers to change their goal from the beginning of the project once they see the completion.
Here are options you can choose when you have finished your property development project:
- First, you can sell your property to gain profit. It means that you aim for short term profit if you choose to sell your development property. The benefit you can gain from this is you can earn profit straight away. Then, the development loan can be paid off quickly. You also can move on to the next project. It means that you need to find another project to start even before your current development property is finished. Filling up your pipeline for your continuation of work is important to make sure there is no time for you to wait for another opportunities. Choosing this options, you will earn more knowledge and experiences of trading which almost every developer has. The disadvantage of this option is that you no longer have opportunities to gain more from the property once it’s sold.
- Another option is to hold on your development property as an investment. Your completed development property can be a long-term investment if you like it that way. There are benefits from choosing this options such as higher rental yields since you can rely on rental payments from the tenants. Your market value will also get higher. It allows you to withdraw a substantial amount of your funds used for the development. This is because the bank would refinance your property once it’s completed according to its market value. The disadvantage of this option is that you will need to keep handling the development property and cannot move on to another project. It is because rental property requires dedication as well.
You can choose of what to do with your completed development property. You don’t have to follow what other developers do.
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You can focus on your own goal and needs regarding to your career in real estate development. If you want to gain more knowledge and experience as much as possible, might as well choose the first option.
If you aim for long-term income, choose the second one.
Cecil Kuhn