Could you make it as a property developer?
As a nation, we love property. Whether it's hunting for the dream home, completing DIY renovation projects or finding property investments, our TV schedules are littered with ever-popular property shows and presenters such as Kevin McCloud and Sarah Beeny seem to have brought property development to the masses. So, we asked John Pinn, Director of a local property development company named Quin & Co Ltd, whether it's as easy as it looks.
Did you make any mistakes when you first started out?
Yes, absolutely. I found I sometimes missed the bigger picture. Property development isn't just about being on site giving orders and directions. As a business, you have to schedule work, maintain momentum at multiple different sites, understand health and safety legislation, and keep up-to-speed on changes to building regulations. It's not just a case of being available to decide where to build a wall!
At what point did you consider doing this as a career?
It started gradually. I’ve always had an interest in construction as my father is a builder, and I was lucky to find a job that allowed me to combine property development alongside other related work. During my mid-twenties, my practical experience felt like it was speeding ahead of my educational knowledge, so I decided to address the balance and enroll on a part-time Masters Degree in Real Estate Management. It really boosted my off-site skills, giving me a more rounded base to work from.
Are there any projects you would avoid?
I wouldn’t say “avoid”, but I never leave a stone unturned before committing to a project. The slightest oversight can be very costly. Developing in a popular city can be competitive, so getting your figures wrong can result in months and months of work for no end profit.
What advice would you pass on to anybody just starting out?
Don’t rush in. If you’re seriously looking at property development as a career, then you need to be prepared to take your time and put enough effort into understanding the whole industry. It’s worth taking steps to get either practical or educational experience. Learning skills, such as completing viability studies and understanding the economics of running a project, will prevent risks later. Being unable to obtain finance, developing for the wrong market, or taking on projects simply not worth the investment are risks that can be avoided if you do your due diligence.
You’ve recently bought and developed your own home. Did you find that easier?
Yes and no. Having prior experience gave me enough confidence when it came to the costs involved and the process as a whole, but making choices on a personal level is harder than I imagined. I felt as if I needed more time to make decisions – probably because the game changes when you have to live with your choices. I lived without a fridge for 3 months, which would be a complete no-no on a professional site!
The diary of a property developer
7am - My day starts early. I have to be on site to ensure it opens as scheduled, and pre-empt any contractor no-shows or failed deliveries.
8am - 10am - By visiting each site in person, I tend to spot things that are easily missed on paper or e-mail. It’s time consuming, but I think I’ve saved as much time as I’ve spent operating this way.
10am - 12pm - Dealing with items noticed on site or following up on things contractors have reported to me, such as ordering materials and investigating resolutions to problems. I often speak to structural engineers and examine product specifications.
12pm - 4pm - Anything from architect meetings to arranging utility connections. I’m often updating health and safety paperwork too. Some days may require further site visits, depending on impending decisions.
4pm – end of day - Preparing for the next day, which often requires reallocation of labour – all dependent on the progress made on each site that day.
Here at CPS Homes, we offer a wide variety of services to investors and property developers across Cardiff, including everything from new development opportunities to providing new homes and apartments to rent throughout the city centre. If you’re looking to undertake a buy-to-let development project, our team of in-house property investment specialists will be happy to help and can offer you advice at every stage of the process. To find out more about our services, contact Barrie at our Roath branch on 02920 454555, email him at barrie@cpshomes.co.uk or fill in a valuation form and we’ll be happy to get in touch with you as soon as possible.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
