Right from the choice of poor quality wood to the expense on beautiful bathrooms, we can enlist any number of errors that an amateur property developer may make.

1. Mistakes made by amateur property developers
We are all aware that property development is a very lucrative business and
can be a rewarding career. The .profile comes with a lot of prosperity and
prestige without doubt. Having said that we would also like to highlight that
it is not as glamorous as it appears on paper and is indeed a difficult industry
to conquer.
Right from the choice of poor quality wood to the expense on beautiful
bathrooms (lavish spending where not required), we can enlist any number
of errors that an amateur property developer may make. These amateur
property gurus are trying to make a quick profit from and we in turn are
often tempted with the idea of buying a house, maybe to make profit in
selling it or for living in the space thus created. This may sound simple and
easy but one should remember that the wrong choice of property developer,
like an amateur one, can lead to many issues and mistakes made. There are
several mistakes that an amateur can make with your property and property
renovation is full of issues and traps.

2. You may end up losing large sums of money. For one, an amateur would
tend to underestimate the costs involved in the execution of the project or
the time the project will take to complete.
The common man is not aware of the limitations of an amateur property
developer and can make costly mistakes by choosing the wrong one.
Property development is a surely a lucrative business. Those of whom are
successful in property development can enjoy a rewarding and satisfying
career, laden with prestige and prosperity. Having said that we have to
emphasise that, property development is not always as glamorous as it might
appear on paper and is a difficult industry to conquer.
How does one go about choosing from a long list of property developers and
how does one know the high profile property developer who would never
fail to hook on to the property market on time? Looking for the glaring
mistakes that amateurs make can be a good starting point. Here we are trying
to insulate our readers from these mistakes by choosing the right property
developer. By highlighting the common errors that amateurs can make, we
are trying to create awareness and we try to ensure that you choose the right
property developer.
Making a purchase in the wrong area
The location is crucial indeed while choosing a property. This is a very
important aspect of real estate and buying property in the right area is
crucial for the success of the project as a whole. The property preforming
well in the market depends entirely on the location and it is a common
practice among amateur developers to believe that a certain property is
performing well in the market while that may be far from reality. Buying a
property in the wrong area at a price which is not appropriate or is over and
above the requirement will indeed lead to huge losses. This is seen as one of
the major errors that property developers can commit. Also, investing in a
space thinking that it is the next “up-and-coming area” while in actuality it
is not will be another big mistake that one can commit. If this is not the case
then no one will be willing to pay a huge price for a property which is really
not worth so much. A good example for these would be houses that are
situated on busy highways and main roads as well as those with poor
availability of transport.

3. Not doing the necessary homework
Being a very tricky business, not doing the necessary research and the
required homework can lead the property developer into a lot of problems.
He could make a fortune or lose the entire amount leading to incurring debts
for the rest of his life. Therefore the property developer has to necessarily do
the ground work before he plunges into any kind of assignment. Most
amateur property developers fail to do this due to lack of experience as well
as the lack of understanding of the business and the areas involved. Vital
questions such as the going value of properties in a particular locality as well
as the stamp duties etc. will help the property developer get the estimates
right, but this does not fall within the capability of the amateur property
developer. They compete with professionals who spend 100 percent of their
time looking for profitable ventures.
Using a builder who comes cheap and who is himself inexperienced
The quality of the property will depend fully on the quality of the builder
being employed. It is therefore imperative that you use a builder who is
considered top notch but is reasonable at the same time. To identify such a
builder one needs the necessary contacts and experience in choosing one but
this may be found lacking in an amateur property developer. So the ideal
thing to do would be to get a quote from several contractors and builders and
get references from their clients from the past. Make sure you have chosen
one with the necessary credentials.
The Amateur property developer may end up getting you deals where you
pay expensive rates for finance
The amateur property developer will end up borrowing more than the
required amount since he would be poor at making proper estimates. This
will once again lead to a loss for you in terms of paying more interest on
amounts borrowed without a requirement. It is imperative that for a project
to succeed one should be realistic in making estimates and ensure you know
the exact figures for cost of renovation and proper time estimates.
So if you are looking for a property developer ensure that you check his
credentials thoroughly and ask all the right questions of him / her before you
plunge into a deal if you wish to keep away from losing money.