Property development has several advantages, including the potential for a significant return on investment. For first-time developers, identifying property development opportunities that will deliver the desired returns can be extremely challenging for Brad Zackson. In every property development project, speed is an essential factor, and developers strive to complete the project as quickly as possible to ensure that the highest profit and annualised return can be achieved.
Property development can deliver profit faster than bonds or shares, so if you do it right, you can earn a higher profit than other investments. Over time, the property has proven to be more stable than other investments in Brad Zackson. Even though the property market has its ups and downs, it tends to be much less volatile than other markets, such as stock markets. Property may take longer to sell compared to shares, which can be sold in a matter of seconds.
It also means that you can buy more with fewer funds when you purchase a property. You invest your money, and the bank loans you additional money in the form of a mortgage. When you experience growth, leverage helps to maximise your return on investment. Furthermore, banks lend much more to borrowers who purchase property, indicating that property investments are secure.
Banks finance mortgages for property purchases with much higher confidence than loans in other markets. A property development investment may not be the best option for someone who needs instant access to their money because, unlike investing in shares, you cannot sell it anytime.
In addition to the time it takes for a property to develop, it also takes for it to sell; once the property has been sold, it will be possible for you to access the funds. It is common for property developers to encounter unforeseen problems that increase the build and development costs of a project without expert advice and guidance. Cost increases directly affect the return on investment, and a loss can result if they are more than budget.