As a residential architect, you’ve probably worked with a good number of developers over the years. Housing developments can be incredibly lucrative, so you might be thinking about how you could translate your own skills into becoming a developer yourself. This is a career option that just makes sense for many architects – you can design and manage the development yourself and see much higher profits in the long run. It is important to know what you’re getting yourself into before you make the leap from architect to architect-developer.
It is not enough to just find funding and start drawing up your designs. You’ll need to know how to select a quality site, choose a construction crew, how to ensure the construction stays on track and how to market your development effectively. Don’t be fooled – it is a lot of work. But the rewards can be well worth the effort, and as a long-term career, you can expect to make good money.
Find Smart Ways To Raise Capital
Raising the capital for your venture is likely to be the toughest part of getting things off the ground – housing developments aren’t cheap. You should look at all the different funding options you could use to determine which will be most beneficial. Some options include:
- Investment from family and friends
- Angel investors who are investors always on the lookout for a new opportunity and can even provide mentorship throughout the project
- Crowdfunding
- Bank loans
- Government funding
If you choose to approach the bank for a loan, you must be cautious and ensure you can afford to handle the repayments throughout the lifecycle of your project. Property developments won’t rake in the cash overnight; it is a long-term game that you must be prepared for.
Consider House Flipping As A Starting Point
You might want to get stuck right in with a property development, but it could be beneficial to start with something smaller and more manageable. House flipping can be an excellent way to learn about what buyers really want in properties and gain a deeper understanding of how to work with construction crews and other auxiliary professionals that you’ll encounter if you begin a development project. While not quite as lucrative as a property development, flipping houses can still be an excellent moneymaker. You’ll need a good eye for quality properties and an understanding of the demands of the market.
Choose Your Site Carefully
The site you invest in for your development will have a big impact on how successful it will be. You’ll need a small to medium site for your first project – you don’t want to bite off more than you can chew while you’re still learning the ropes. It should be in a desirable location, well served with connections to roads, public transport, amenities and green spaces. You should also ensure that it is a site that is suited to construction or that can be made suitable without too much expense.
Keep Sustainability At The Forefront Of Your Mind
Any modern property should be built with sustainability in mind – not just because of changes in legislation that make it a legal requirement but also because of the demand for eco-friendly housing. There are many ways to make a property development more sustainable, and it’s best to go above and beyond what is set out in law. A good example is the biodiversity net gain which is coming into effect in 2023. The current recommendation is to achieve a 10% net gain, meaning that the current habitat for wildlife is either preserved or a new habitat is built off-site, with a 10% increase in the habitat available. Exceeding this requirement will be a real feather in your cap and will show investors and buyers you’re serious about sustainability. You can find out more about biodiversity net gain and how to implement it from the experts over at Arbtech.
Hire The Best Construction Company
A construction is only ever as good as the people building it – the construction company you use could make or break your project. You should look for high quality, local companies with plenty of experience building modern houses. Look at their testimonials from past clients and discuss your development’s needs with a few different companies to find one that best suits. The construction company you choose should have access to the best suppliers and materials and a quality workforce of highly trained professionals.
Take Some Additional Training
While being an architect can prepare you for many of the practical elements of developing a housing estate, there are many more skills you’ll need to be truly successful. It is best not to leave things to chance or try to learn on the job – find training opportunities that can set you up for success instead. There are a wide range of courses available to help educate you on the fundamentals and advanced theory and practical skills for things like:
- Property development
- Property management
- Real estate training
Market Your Unique Advantages
As an architect-developer, you will be unique among a sea of property development companies. Since you have a personal stake in the development, it is a good idea to be the face and voice of your business in marketing materials. Many homeowners would prefer to buy from an individual rather than a faceless corporation, and you have the ability to market yourself as that individual. You should also use your architecture credentials as a selling point when marketing, showcasing your skill and your commitment to more than just making money but building stylish, quality homes as well.
Final Thoughts
Becoming an architect-developer can be a daunting prospect, but it is a career path that is well worth exploring. You should do your homework before you even think about looking for a site so that you know the key responsibilities and requirements of being in charge of an entire development project. Extra training in how to manage and run a property development can be beneficial, and you’ll need to hire the very best people to help ensure your development is a success.
