Reasons For Unsuccessful Property Developer.

George Clooney once said…You learn from the mistakes you make and from the mistakes other people make. The truth is, you don’t learn from success; you learn from failure.

Those who are successful in real estate development share many things in common, though the problem is that it’s easy to be blinded by their success, chalking it up to luck, and missing the very specific habits and practices that led to their success.

This post is going to highlight failures in property development, as away to learn what not to do.

1. Location, Location, Location: Buying in the wrong location: The term location in geography is used to identify a point or an area on the earth surface or a place of settlement, activity or residence. And therefore location of the property is so important that successful property developers spend 100% of their time searching for profitable projects in a great location. Unfortunately, the extremely unsuccessful property developer ignores this fundamental principle in the hope that the area will be the next up and coming area, despite it not being a nice place to live.
2. 5 Ps formula: Gather the 5Ps before you start that is Proper planning prevents poor performance. The unsuccessful property developer rushes in without them and Those who succeed take the time to gather the “5Ps” before they start the project.
3. The cost of Borrowing: Never Borrowing more than you can afford. When it comes to real estate, the more you spend, the more money everyone makes. And it happens on every level of your property purchase and development. Paying expensive rates for finance is a sure fire route to failure as a property developer, no matter how much money you think you’re going to make.
4. There Is No Room For Greed In The Real Estate Industry: It is human nature to want to squeeze as much profit as you can out of every single deal you come across. Most people in business associate profit margins with success. To be fair, this is true. However, monetary gains are only a part of real estate investing. While this approach may work on certain deals, it will ultimately come back to haunt even the most experienced of investors. There are many scenarios in which making less can have a much greater impact on your bottom line. As a result, the extremely unsuccessful property developer prices the property too highly and sabotages any chances of making a sale.To avoid this, work well with your team of real estate agents and others to objectively appraise the value of the property before you start as well as once you’ve completed the project.

There are more reasons for unsuccessful property developers but these are the common ones: You may visit our office on Najim mall B6 Ntinda Kampala for real estate consultation.