Property Developing Budget

What profit margin should I aim for?

When you're coming to sell a property, it really depends on how long you've owned the property before, because the longer you've owned it, the more the capital growth will happen on the property automatically anyway. For example, if you've owned the property for, say, 7 to 10 years, you'll probably be looking at 1 percent increase on the value of that property. Mind you, if you've just bought a property to do it up and then put it back on the market again, it could be as low as 1 percent margin that you would accept. So it really does depend on the situation, the circumstances, and how long you've owned the property for.

How much should I reserve for contingency plans?

When you are calculating a budget for your property development, you need to put a contingency aside and that contingency should be at least ten or fifteen percent. There will be things that come along that you just haven't accounted for and things always cost a bit more than you originally think, so at least ten percent would be a decent contingency during property development.