The current popularity of property development programmes like Channel 4's Property Ladder have only added fuel to the fire, inspiring more of us to dabble in property development. After all, how could you fail in a rising market?

But how do you go about becoming a property developer and what are the pitfalls?

More importantly, with interest rates rising, is successful property development really achievable?

"It is possible to make money at it, but you have to treat it as a business, " says small-time developer Andrew Brooks. "The first thing you need to be comfortable with is the idea of debt. Property development is all about borrowing large sums of money. You'd be mad to get into it if you didn't know how to manage a profit and loss business plan."

With his financial background, Brooks had a head start, but, apart from that, he has learnt the property development business the hard way: from his mistakes. A full-time developer, he started Brooks Reconstruction back in 2002, when he bought his first development property in Slane, Co Meath.

"There had been a big trend in London towards people looking for property out of town. We thought Slane would be good value and that there would be a strong market for people looking for period houses in a good commuter belt location. We bought a 300year-old three-bed stone house with a small rear yard in need of redecoration . . . as well as rewiring, plumbing and a new kitchen and bathroom.

"It was a huge learning curve and we made several mistakes. Although we kept the refurbishment costs down to 29,000 by doing a lot of the work ourselves and sourcing the best deals on fittings, we paid 230,000 and a further 10,000 on stamp duty and incidentals. This was too much for the property. Looking back, even though we got bargains, I think we misjudged our market, we went too high- spec on the fittings for that area, so we ended up losing a little."

Brooks turned around the project in 10 weeks, selling the house for 275,000. You really need to make about 15% to 20% on period properties and about 10% to 15% on newer properties if you want to make a profit."

When you're borrowing, time really is money, so turnaround times are key to successful property development.

But while quick projects involving only superficial refurbishment are ideal for firsttime developers, such projects are hard to find at good value.

Inevitably, most development projects are going to involve some level of structural work, which means applying for planning permission. The problem with that is that getting planning permission can easily take up to three months, which means three months of mortgage repayments. That is why you need to have a few projects on the go at one time, says Brooks, who is now involved in his fourth project.

"Ideally, you should have one at the purchasing stage, one in the planning permission stage and one up for sale. That way, you ensure that your cash flow is strong and you have the finances to cover your expenses, " he says.

In the end, it really boils down to buying well. But how do you do that in a rising market? "It is difficult to get a good deal, but that's all part of the business, " says Brooks.

"I'm on the internet every day, watching what's happening in the market. Early bidding can pay handsome results. Sometimes sellers need to make a quick sale, so it's worth trying to persuade agents to take your offer."

Brooks also recommends buying out of season. "Buying when the market slows during the summer and at Christmas means you can avoid bidding wars and you can sometimes find a bargain."

Another good approach is to buy properties in which no one else is interested, according to Martin Doyle. Proof that you can be a part-time developer, Doyle, who is just 30, has been successfully buying and renting property in Dublin for the last three years.

"The trick is to buy well, " he says. "You have to look for properties with potential: the ugly duckling you can transform into a swan."

As well as keeping an eye out for the popular two-up, twodown, Doyle suggests looking for structurally sound properties that are dated in style and properties that other buyers don't like for some reason and have not sold well. "The seller may be keen to sell at any cost and you could get a bargain."

While many might be tempted to look for better value outside Dublin, this does not necessarily mean you'll make a better profit. "You'll buy cheaper, but you'll also sell cheaper, " says Doyle.

As an estate agent with Douglas Newman Good, Doyle knows his market and how to get a good deal as well as having a developer's eye for potential. The real problem for those starting off is stamp duty, according to Doyle. "Most people are interested in property development as a way to make money, but when they do the calculations they see it's not so easy, " he says.

"Stamp duty is a big problem for people starting off. The most sought after properties for development are two-up two-downs, which are really popular with young professionals. These generally cost between 400,000 and 500,000. This means you need about 40,000 up front for stamp duty and legal costs."

A crucial point when working out your figures and finances is to work off today's sales prices, according to Iris Keating, an associate director of DNG.

"Most people underestimate the cost of development and base finances on what they think they'll sell the house for, but you shouldn't try to second guess the market: that's gambling. Base your calculations on today's prices and always have a contingency fund for the unexpected."

Once you have your finances sorted out, the next step is to identify your market, says Doyle, whose advice is to "buy with your buyer in mind."

After that it's all about maximising the price you can achieve, he adds. "Adding value makes your property more desirable, which helps increase bids and the selling price.

"There's little point struggling through the refurbishment process if the property would have sold for more regardless. But above all, make refurbishment decisions based on what your buyer would want, not what you would like."

So how exactly do you add value? "Take a house from one market and bring it to another, " explains Doyle. "For example, take a one-bed cottage and turn it into a two-bed. Or extend a property to make it bigger."

It's always worth spending on kitchens and bathrooms, according to Doyle, although he's careful to point out that this doesn't mean you have to spend a fortune: you can get good style on a budget.

Property development tricks and tips are not just for those who want to make some money. In today's market, these approaches are a way for firsttime buyers and young couples to fast-track to their dream home.

"A lot of people buy and develop the property as they're living in it and then sell it on as soon as they've improved it.

This can be a very good way of getting up the property ladder quickly, " according to Doyle, who has bought and refurbished three properties to get to his current home.

"Our first property was ideal for property development: a one-bed cottage that nobody else was interested in. We bought for about 260,000 and had stamp duty and incidental costs of about 20,000. Looking to add value, we decided to turn it into a two-bed, which cost about 50,000.

"It would probably have sold for around 330,000 at the time, but we decided to rent out. Obviously, three years later, we've now got the benefit of capital appreciation.

"After that we bought a terraced house that was structurally sound but had been let go and needed rewiring, heating put in and new windows.

The property also had a small kitchen with a dining room beside it. We knocked the two rooms together to make a big kitchen/dining room, which is much more appealing to families."

Doyle is currently renting his development projects and explains why some developers choose not to sell on immediately. "The rental market is quite strong at the moment, particularly in the city centre.

Most investors opt for interestonly mortgages, because of the reduced monthly repayments. With current rental yields between 4% and 5%, this will cover your repayments."

The benefit of renting a property in the current rising market is that you increase the potential for capital growth while covering repayment costs through rental income.

However, if you opt for an interest-only mortgage, you will need to sell the house to repay the capital, which means you are at risk of negative equity in the event of a downturn.

Expect the unexpected when it comes to property development . . . and expect hard work . . . but if you follow the rules and do your research, the rewards are out there.