Investing in property is still one of the finest ways to safeguard your money, generate a steady income, and of course build upon an investment. But it’s not as simple as finding a project and running with it; there’s a myriad of things to consider when it comes to property investment. And when you’re talking about investing in a property that needs a lot of work – or even one that isn’t built yet – you must ensure all the boxes have been ticked.
Those who choose to invest in these types of property often reap the financial rewards. Offering more scope for profit and increased revenue going forward, choosing to go down this route results in higher ROI. But it’s not money for old rope. Choosing to invest in properties like the aforementioned require you to do your homework.
Properties that come with planning permission already in place often provide the best investment opportunities. Providing almost uncapped financial rewards and a fast turnaround time, the only limits to investing in these types of properties are what it says on paper.
So why should you invest in a property with planning permission – over one that doesn’t come with any?
There’s less risk
It’s not often that property development goes wrong when people have done their research. But by investing in property with planning permission, there’s one less risk because everything has been signed and sealed. So if you want to turn an old warehouse into flats or build an extension, if it’s been pre-approved, the risks of losing money become slimmer.
Applying for planning permission does cost money. Although a relatively small amount compared to the price of a property investment, getting plans drawn up by an expert and submitting a planning permission request can cost hundreds and thousands. And if you have to reapply more than once, this soon adds up.
There’s a larger margin for profit
In a relatively low-yield market, reducing the ongoing outlay can make a big difference. Resulting in there being more room for profit at the end of the project, you’ll end up with more in your pocket than you will if you decide to forego pre-approved planning permission. And for investors, profit is the name of the game.
It’s less stressful
Anyone who’s invested in property knows that it can be incredibly stressful. However, waiting for permissions to come through will only add to the pressure. For a smooth project that keeps stress levels to a minimum, think about planning permission before signing on the dotted line.
Investing is all about a quick turnaround. Most investors like to get in and out in the shortest time possible. A project with planning in place already will always move faster than one that doesn’t. No afternoons wasted chasing up councils or waiting for officers to get back to you. You can simply get on with the task in hand right now and guarantee the fastest turnaround possible.
What do you think the benefits are of investing in a property with planning permission?