Being a property developer or a landlord in the age of rising house prices and bedroom taxes seems to make financial sense. If you were able to purchase a property in the market crash and spend a few years fixing it up you were probably onto a winner. But now with the changing landscape of things like Brexit casting a large question mark over our living costs, can we afford to put in the time and effort to fix up a home to get it onto the property ladder so it can be sold off at a reasonable price? The more stringent checks that are placed on home buyers make it so that nobody can buy a house because they will never be in the market. Residents of London are now renting as a cheaper option. And the baby boomer generation found it so easy to purchase a house that many are unable to see the problem with those in Generation Y and Z. Is there a winning formula that you can apply to get onto the property ladder? Or can you develop a property cheaply to sell it on and recoup costs?
The Age Of The Property Developer: A Difficult Role To Undertake
There are many shows on TV that makes it a financially lucrative role to people. Do up a property on weekends and sell it on. Simple, right? Well, not really. If you get it wrong, you could potentially be in debt for the rest of your life. Or you could even have to file for bankruptcy as an escape route. The fact of developing a property is that you need to add value to it, or develop value. Even if your house has gone up in value due to the rising market doesn’t mean that you are Alan Sugar. Live in the real world. Look for reputable builders and get references. Do your homework!
Get The Location Right
While everyone will seem to have an opinion on this, you need to define what is the best location for you financially. Buy somewhere in the middle of a city and the costs will be infinitely higher than on the outskirts. You may just break even. Keeping your eye on the underdog of areas, or somewhere that is viewed as sub-par might be your trick to making a big profit down the line. Every family needs access to schools and shops. But the richest property developers in the world have been able to spot a bad location and make it worthwhile.
Keep It Neutral
This applies personally, and in terms of your style. If you are doing up a property to sell, you need to make it a blank canvas for the next person to paint their own styles onto it. Adding huge swathes of colour can serve to alienate certain buyers. You are better off having bright and neutral colours.
In terms of your temprament, being neutral will serve to keep you level headed, and not get greedy. As it is too easy to feel tempted to rise the price. Your property will be on the market for a lot longer. So be reasonable.
