More and more people have turned their interest to property development. One of the most significant reason is that the property prices can go up from time to time. It is a prospective premise for investors to turn to property development.
We also call it real estate business. The form of the company sounds promising for everyone. However, it has more risks for the starters. But before giving you some tips to start getting involved with this niche, let’s see the benefits of conducting the property development in Sri Lanka.
The benefits of property development in Sri Lanka
It is evergreen and steadfast
The price rises from time to time. Even during the economic difficulty, its price only falls a bit. It is evergreen because you don’t know how many properties for rent or sale in the future. The contractors will keep producing the estates when there are demands.
The value will be increased from time to time
The good thing about the property development is that the property always appreciates in value from time to time. The price will also rise with it. That means when you hold your property for sale, you will get more profits the next year or so.
That can be your passive income sources
Compared to the conventional businesses, property development is more relaxing. It is more passive than other types of business. But keep in mind that it is not entirely passive. Instead, you will need to stay on the track so that you will keep your properties up in public. That means you will need an ample marketing team to keep promoting the features and engaging with the potential clients.
When it comes to taxes
You will only need to pay the fee once the property is depreciated.
Friendly monthly mortgage
The fixed amount of monthly mortgage has been settling the moment you apply it for your property. That means what happens economically in the future won’t affect the amount you should pay. This will save you from wasting your money
Tips for property development in Sri Lanka
Property development can be a daunting premise for the first timers. If you have just jumped into this business, you will really need to get on the right track to make sure that you won’t lose your money in the process. Here are the tips that you can consider so that you will get on the right track of property dealing.
Make a plan
You won’t succeed in selling the property unless you plan it well. Planning will save you resources, money, and time in the process. Before making a purchase, make sure that you have taken care of complicated things like paperwork, and so on.
Take the advantage the moment you purchase
You have the chance to make a profit the moment you buy the property, not when selling it. The current price that’s offered to you should be flexible. That means you don’t have to pay for the full amount. Don’t neglect the fact that the seller of the property also needs to make sales. So, they will give you time and space to bargain. Don’t hesitate to do it to make a reasonable profit the moment you purchase the property.
Do your homework
You can’t be sure that the property you are scouting is the right one until you research and compare the available options for you. It is indeed possible to make such colossal profit or lose your money in the process. It is indeed a risky business.
Before making any purchase, you could take your time to research and compare. Find out the available properties in such area. Do not leave out every aspect that may affect the cost of renovation or any additional value in the future. Find out who’s going to purchase these properties for you.
Choose the best location
Choosing the site is essential. Many people neglect this thing and consider that the best one must be the place in the center of the town. When you choose that location, there’s a chance you will pay such fancy price without giving you the opportunity to profit bigger. Well, it is because you already purchase the property at such expensive price. And you only have few rooms to make the profits.
Being close to schools, government offices, malls, and other pivotal places is essential. But this should not be sacrificing your bankroll. Take a look at the areas and site first before making your purchase.
Find the seller of the property
It might be difficult to find the seller directly in Sri Lanka. You can do it the easy way. You will want to get the information from the estate agents about the marketplaces. You could also look at the newspaper ads, free classified advertising websites in sri lanka , real estate companies in sri lanka, or any other popular places. Many sellers post their ads themselves on the classified ads websites more than the news papers !
Find your buyer
There’s a chance that you will need to renovate or makeover the property before selling it to someone. If you are planning to rent your property to college students, or worker groups, you may not have to renovate the property exclusively ( Tip : High demand exists for apartments property & houses for rent in the Colombo city limits, Dehiwala, Colombo 6 and Nugegoda areas in Sri Lanka ).
If you are planning to rent the property for students, for instance, then you will need to make sure that the property has plenty of rooms with attached bathroom. Everyone will need the personal space and bathroom. Some also need their place to be more concentrating on studying. Enlarging shared kitchen will be a great idea if the students are independently taking care of their foods.
The family would want to invite over the guests to enjoy evening tea or BBQ party. Consider choosing a property with patio. Or if there is any blank space, you could renovate the home by adding the patio. The outdoor area is also crucial for almost all modern occupant
High profile clients might require more aesthetics and features of the property. Of course, you’ll spend more on the renovation. If you target the family to live in the house, consider making it more family-friendly. Consider renovating the home or property according to what would be expected by your potential buyer for property in Sri Lanka.