Property development requires careful planning and consideration, writes John Downes.

You could be forgiven for thinking that you only have to turn on British television in the middle of the day to learn how to make money from property.

From shows about finding a dream home, to programmes featuring houses in need of serious modernisation, daytime TV schedules are crammed full of advice on getting the most from property investments.

Here in Ireland, the Celtic Tiger has also had an influence on the property market. In a country which has witnessed huge economic growth in recent years, property prices are at a premium, particularly in large urban areas.

For those lucky enough to have bought early, there are large sums of money to be made. But how easy is it to become a property developer? Is it as straightforward as television programmes sometimes suggest? What are the risks - and the rewards - of doing so? According to Simon Ensor, chairman of Sherry Fitzgerald estate agents, it is essential to remember that in Ireland, as in every country, there are ups and downs in the property market.

It is essential to watch what is happening in the marketplace, he explains. If you are looking to develop a property in a specific area, how this area is likely to develop in the future is arguably more important than how it has developed in the past.

For example, if a village has a relatively old age-profile, there is a good chance that younger professionals could start to move there. This will increase the desirability of the area - and ultimately push up prices. Similarly, good accessibility to the nearest town or major city is important, as it increases the popularity of the area with people who wish to commute to work there.

One of the most difficult things for anybody looking to become a property developer is finding the equity to get started, Ensor acknowledges. Many property developers start on small projects and work their way towards bigger developments.

A good rule of thumb, he says, is to presume that financial institutions will lend two-thirds of the cost of the purchase, with the developer expected to provide the remainder. Often, individuals starting out do this by saving the necessary capital themselves - or if they are fortunate enough to be in such a position, by borrowing from family or friends.

"Getting your hands on that first third is difficult," Ensor says. "A formal business plan is also essential, so that the bank knows when it will be getting its money back with the relevant interest.

"You have to do a lot of research into the move. What will be the cost of refurbishment, and can you do it yourself, or do you have a good relationship with tradespeople? If they do a bad job, it will end up costing you money." Another important selling point is how the newly-developed property looks to a potential buyer, he points out.

Any good property developer will be conscious of the need to maximise profits by keeping costs down. While any refurbished or newly developed project should be finished to a high standard, this should also be done as cost efficiently as possible - and in a way which offers buyers the opportunity to express their individual tastes.

"You want the finished product to appeal to as wide a market as possible," he explains.

"Don't inflict your own personal taste on the market, because it may not agree with it. Keep things simple and tasteful."

Darrell O'Dea of investment and networking club Irish Complementary Education Systems agrees with Ensor that getting started on the property-development ladder can be difficult. But he believes that it is more important to get the basics right first.

As a property developer who now has a portfolio of properties, he started out by reading books on how best to proceed.

He says that an important realisation was the difference between an asset and a liability.

Any property developer needs to be aware that although a property may increase its marketplace value compared to when you first purchased it, unless it is actually putting money into your pocket, it is still a liability.

As a result, your aim should be to turn it from being a drain on your resources into something which creates money for you at the earliest opportunity. This in turn will allow you to move onto your next project.

Having the right team, including a good accountant, solicitor, broker and bank manager is also essential, he believes - as well as a detailed knowledge of what your income and expenses will be.

Once these are in place, however, he says there is little room for personal sentiment when he is deciding to invest in a property. Instead, it all comes down to the "numbers game".

"I go purely on the numbers, not my instinct," he says. "It is about common sense. If the numbers don't stack up, then I don't invest."