TTT... Make sure you pay the right price
“The price you pay for the site will depend on these factors, and getting them wrong can have disastrous effects.”
It may sound obvious, but the price of a property can be argued to be the most important factor when evaluating a successful development. Too often, an incorrectly priced property, i.e. paying over the property’s value can become the downfall of a developer.
As well as purchasing price, there are other costs that need to be considered. When running the initial appraisal, be realistic when calculating construction and development costs and don’t be overly optimistic about the sales. The price you pay for the site will depend on these vital factors, and getting them wrong can have disastrous effects, says Eli Korman, head of development finance.
If you would like to discover more about borrowing and development finance, please get in touch with TAB today. Contact our sales team at firstname.lastname@example.org or call 0208 057 9070.
This article is for information only and does not constitute advice or a personal recommendation. When it comes to financing, any property used as security is at risk of repossession if you do not keep up with your payments. If you are unsure of the risks, you are advised to obtain appropriate professional advice. TAB is an unregulated lender so will not lend on your principal property.