We’re living in uncertain economic times, but many individuals are reacting to this by making a career for themselves.
The self-employed route is quite an attractive one because you no longer need to rely on your employer to make your living; if you have an entrepreneurial mindset then you could really build a cushy future for yourself.
One of the most lucrative business prospects out there is property development because it’s an industry to which anyone can learn the tricks of the trade the barriers to entry are low.
If you’ve had your eye fixated on the property development market for a long time but you’ve never known how to get stuck in then here are some tips for building the foundations to a strong property development business.
Sort out your finances.
Before you make a business plan, you need to have an idea of how far your can take your property development empire in its early days. You need an initial sum of money for investment in your first property, and this is why you must take note of your personal finances.
You may need to take out a loan, but you should only do that if you see a clear future for this business and the potential to pay back that loan in due time based on your projections for your personal empire.
Figure out your profit strategy.
When it comes to making money from your property development business you need to be thinking about profit from day one. That means, when you buy the property, you should be looking to take the asking price down as far as humanly possible in order to maximize your eventual profit.
It’s good to look out for properties with planning permission because you want to buy something with the potential to be hugely increased in value.
Of course, another way to make money back on your investment is to rent out your properties. You could always look into landlord insurance if you were hesitant about this idea and wanted to safeguard your assets.
The point is that there are numerous avenues down which you can walk when it comes to making money from your business, and it all comes down to potential for improvement.
The secret to choosing the perfect property.
Choosing the perfect property as a developer all depends on location, but the instinctual feeling that you should go for properties in the best part of your town or city and then sell those on is wrong. The best properties cost the most money and they’re not only lacking in any need for improvement but they’re not screaming “profit potential”.
As mentioned previously, making a profit on the price you paid for a property depends on a huge potential for improvement. The smart move is to go for the underdog property in the suburbs because those parts of town on the outskirts could one day become the “good part” of town.
It’s also smart to purchase the underdog properties because there’s huge profit potential there on an immediate basis. Paying a small price for a fixer-upper means you have the ability to turn a mediocre or old house into something just as impressive as the more expensive houses in town with a little DIY interior design.
Turning a huge profit when you’re just entering the property development game is about knowing how to transform a bad house into something entirely new. You need to know what potential buyers are looking for, and that’s a combination of both curb appeal and modernity within the household; show them something that could be their future home.
Go for minimalist design, white walls to create a blank canvas, and an impressive exterior to make the right first impression.
Joe Tirimacco, Property Developer and Mortgage Broker, gives excellent tips on how to leverage your current assets to create more wealth in property. And together, Joe and Accountant Nick Corbett talk about the pros and cons of flipping property. Joe and Nick discuss bugetting, tax issues, and the finer details of flipping or flopping.