To the uninitiated, property developing sounds very glamorous and some people see it as a 'get rich quick' opportunity...but is that the reality?

Of course it is possible to make significant profits from development and it is very satisfying to find a property, add value and realise the gains, but there are many pitfalls awaiting the unsuspecting developer which can turn a potentially lucrative deal into a financial nightmare. I say this not to scare you off from developing property, but to make you aware of the potential problems. As with everything in life, if you go in with your eyes wide open, the less likely you are of falling into a big hole. With over 17 years in the business, I have tripped into a few, or heard about others who have fallen over, head first.

Some of the more well known issues with properties include damp problems and structural/subsidence issues, which are often visible or can be uncovered by making sure that you have a damp meter in your pocket whenever you visit a property. Understanding the costs of rectification requires previous knowledge or the services of a trusted builder or surveyor to give you clear advice. Most damp and structural problems are solvable (although I have seen a few houses where a bulldozer is the only answer). Paying for a full structural survey on any property where you have concerns is the right approach. It's better to pay an additional fee up front, than end up owning a property where you were not aware of the full extent of the works. It's also important to speak to an estate agent and mortgage broker to understand the views of your potential end user and the mortgage lenders, especially if your plan is to immediately sell on.

While demand for properties that have a 25 year guarantee against damp may still be strong, properties which have had serious structural problems, even if completely rectified, can have a very limited resale market.