Sara Mungeam (aka @houseobsessed) breaks the stereotype that has been cast by so many property developers. Gone is the notion of the character lacking white box development, as she redefines how developers should be designing our future homes. With the simple goal to create beautiful spaces, it’s clear that each property is a labour of love, and the wonderful result of determination and a passion to help people experience an elevated and more enjoyable lifestyle. Her most recent project ‘The Corner House’ designed by 31/44 Architects is profound visual proof of this, it is a joy to experience both inside and out. It was a pleasure to speak to Sara about her design journey, to talk about the trials and tribulations of property developing and what she is going to get up to next.

How did you get started in property developing?

In hindsight, I wish I had started sooner! Years ago when I bought my first flat in Brixton, I took a month off work, did it up myself and realised how much I loved properties. I probably should have been an architect, as I love walking around admiring different buildings and imagining their history. I always dreamt of property developing but I felt tied to my career, especially as I had increasing responsibilities such as a mortgage and eventually my own family to support.

When things came to a halt with a marketing agency I had set up, I finally pursued my love of property. I teamed up with a friend who was also interested in property developing and we found a little cottage in Brockley to renovate. It was an amazing experience and we learnt a lot from each other, I would project manage and track finances while she would lead the interior design with a Scandinavian inspired feel. In total we did three projects together and then went our separate ways with the decision leading me to embark on the Corner House!

What would you say your design philosophy is that sets you apart from other developers?

When I began this journey, I noticed that everything was bland and lacking detail or character to supposedly have universal appeal and I immediately knew that if I spent a bit more money in certain areas, I would reap it back tenfold because people want to live in beautiful spaces! I agonize over the details as I would in my own home, it’s all about creating something that my family and I would be happy to live in and adding features and elements that immediately captivate people as soon as they walk into the house.

How do you set about understanding the scope and potential of a project?

It starts with building a good rapport with local estate agents who can tell you if anything interesting is going onto the market. I look for places that I can add value to either through footprint or number of units possible.

There is then so much work that goes on in the background to ensure it is the right property to take on. I put notes into the neighbour’s doors and speak to them directly, get in touch with the local planning department and spend time on the planning portal to understand what has been previously approved in the area and then contact many other roles such as structural engineers and architects to see if they have any experience with similar projects.

You always have to hope for the best and plan for the worst. The more I property develop, the more I am aware of where things could go wrong, and as you become more aware of the risks, it almost becomes more difficult to find a property. It’s incredibly different from buying a property for yourself because ultimately the numbers have to add up. You aren’t buying the property with the long term in mind and therefore you aren’t going to have time to ride out any market fluctuations so you’ve always got to stay alert.

How do you ensure you stay within budget while keeping in mind your goals for the space?

I’m perhaps a little unusual and enjoy maths and budgeting, so I have a spreadsheet which helps me to keep an eye on everything. I will initially have a really broad budget with rough estimates for things like rewiring, plumbing, plastering, utilities and architects fees. Once I have done this research, I will then put the project out to tender which is the area that people most often underestimate in cost. With experience comes an understanding of what elements need to be signed off by the builder at the tender stage to make sure that everything is covered and you are protected, and once this is agreed I usually add a 10% contingency. For the Corner House project, I barely spent any of the contingency because I had been incredibly thorough upfront and had the right conversations at the right time with all those involved.

Throughout the project track everything you are spending, cross-reference it all with your bank account and create a cash flow forecast. Ensure that you have a constant dialogue with the builder so that you are aware of any changes and what that may cost. That way you can redistribute your budget to ensure you stay on track and can still make some profit.

What are the most common mistakes you see from first-time property developers or renovators?

Looking back for me, I found it difficult to navigate the tax system. As a developer, there are a lot of different taxes that need to be paid such as Construction Industry Scheme (CIS) returns each month which can include collecting tax on behalf of the builders involved too. There is also the Annual Tax on Enveloped Dwellings (ATED) which is relevant if you are a registered company and own property worth more than £500,000. There isn’t an institution that outlines this kind of information so it can be hard to learn about, so this is when it is important to network with other developers so that you can keep each other informed.

Another area that often catches people out is ensuring that you have the correct structural warranties and architects certificates. It’s easy to think that it’s not a problem to have these, but many mortgage lenders and banks will turn you down if you don’t have them.

What are the three biggest challenges you’ve personally had to overcome while property developing?

Firstly, it has to be to do with finance and raising capital. Negotiating with lenders can be difficult, and even once you have an agreement, most want to monitor the build and consequently drip feed the funds which can cause tension between yourself and the builder. Another option is to opt for private investment, for example from family and friends, which makes the cash flow easier but adds more pressure and responsibility on yourself to ensure that the project runs smoothly.

Next would be finding building partners. The ideal scenario would be to work with someone who is either an architect or builder themselves so that you have more control and security throughout the project. Unfortunately, as my property portfolio develops scale and size, I’ve had to find new building partners with the relevant level of experience for the project, and it can be tough to find to build that mutual trust and relationship again and again.

Finally, working on my own. Whilst I don’t have debates with someone else about what to do anymore, there is no one to bounce ideas off which can be tough. However, I think in the future Instagram will help hugely with this issue as it can become a tool to check or compare ideas I have and to see what the consensus is.

And of course, what have been the biggest accomplishments?

Every project at the time makes you feel incredibly proud, they are like your baby that you’ve given birth to! The hardest project to let go of was probably the Peckham House that I developed a couple of years ago. It was a home that I could see my family living in and had everything in it I have ever wanted. The Corner House, of course, is also a huge achievement because its the first new-build I’ve ever completed and it was great to work with an architect on something from scratch.

How do you manage to be the client, developer, project manager and interior designer?

A huge part of it is time management. I still work on average three days a week freelancing in the marketing industry but as soon as my working day is over I head straight upstairs to my office to work on the designs and make decisions for a project until 10pm. I’ll then watch an hour of TV with my husband and head straight to bed. It is exhausting but I thrive on this, compartmentalising each job certainly helps and having my Moleskine notebook with huge to-do lists in keeps me on track.

What drives you and what is next for you?

The money is a good part of it, but I genuinely just enjoy the process. I wish I knew what was next! Certainly more projects, we purchased the Ugly House three years ago so it would be great to progress that, especially as it’s a personal project. In the meantime, I’m looking to work on a smaller project, while always searching for the next big thing.

Thank you so much to Sara such a wonderful conversation. If you wish the follow her property development journey, you can do so here!

All photography is by Rory Gardiner

How To: Property Develop