The real estate game is an enticing one for many entrepreneurs. In contrast to other types of industry, the business of buying and selling (or letting) houses, flats, and apartments is very secure. Accommodation is a commodity that never goes out of style. The market might dip and rise from time to time but people will always need a place to live, so it’s a timeless business model.
That being said, you may be looking to enter an industry with no shortage of hungry potential buyers but this doesn’t necessarily mean any old amateur can succeed in the competitive and complex world of property development. It’s an art that anyone can master but only if they’re willing to put in the research and learn which pitfalls to avoid. If you’re dying to get stuck in but you’ve no idea where to start then here are some tips to help you buy and sell property properly.
The pre-plan.
It’s so important that you have a strong plan before you get into the game of buying and selling property. You might have the entrepreneurial drive and passion to enter this industry but it’s a learning game and you don’t want to learn the hard way. It’s crucial that you do your research before sealing the deal on a property. Watch the market and learn to assess the ways in which it moves and changes over time. Often, it’s better to buy a property as values are dropping so that you can fix it up and sell it on once the market improves. Finding a letting agency or other experts in the local real estate market might be helpful for you if you want some advice as to when you should buy. Learn as much as you can from others who already have that experience.
Of course, finances should play a huge part in your planning process. Buying that first property to get your business running can be difficult, especially if you need some of those finances to renovate and improve the property you’re buying. Much as mentioned before, you need as much support as you can get in this venture. If you’ve never borrowed money before or your financial situation hasn’t been great in the past then you might want to look into bad credit short term loans to help get your property development empire going. You don’t always need a great credit score to get a loan. Essentially, there are many options out there for anybody who wants to get into property development and all it takes is a lot of planning and research. There will be a route for you into this industry but you have to do your preparation.
Are you good at DIY?
This is one of the most important questions to ask yourself. Knowing how to fix a leaky faucet is a good start but, as a manager of one or many properties (depending on whether you’re selling or letting), you need to have an extensive knowledge of building maintenance and basic repairs. If you’re a landlord then this is particularly true; you’re responsible for damages to anything included in the inventory and it’s up to you to remedy the situation when things go wrong in the property. You should probably hire a maintenance expert if you’re not experienced in this field.
Location is so important.
You’ve probably heard this before, whether you’ve researched into the world of real estate or not: location is everything. Of course, you mustn’t misinterpret that statement. Choosing a property in a good location doesn’t always mean buying a property in the “good” neighborhood; areas can change over time and sometimes the competition is far more ruthless in a location with many other exquisite properties. Sometimes, it can be a smarter decision to choose a property in an area with little other properties in demand or up for sale. It means that potential buyers in that area are likely to gravitate towards your property.
You also need to think about location when it comes to developing the property you buy. Think about the kind of people who live in the area and deduce the types of people who are likely to move into this house or flat you’ve bought. If there are schools, playgrounds, and parks nearby then it’s very likely that families will be interested in the house and you’ll want to think about that during the interior design process; more bedrooms, for example. If the property is located in the heart of the city near colleges or clubs then you might want to target the design of the property towards younger buyers or working professionals. Location affects everything when it comes to real estate. Don’t let yourself become lost in the interior of the property; pay close attention to a building’s surrounding area when you make a purchase.
Legal help.
Don’t put pen to paper on any sort of contract until you have a solicitor. This is an absolutely vital piece of advice to take on board before purchasing a property. Whether you’re new or old to the game, you shouldn’t sign any contract of sale without advice from somebody who is of a professional background in the realm of legal expertise. This is definitely true when you’re trying to get planning permission for a property (whether it’s a build from scratch or you’re planning a big extension/renovation).
Sometimes, a relatively straightforward contract might not be asking you to sell your soul but the application could still end up in council for a year or more if you’ve misunderstood certain points. Minor issues can makes things very difficult for the unprepared property developer. As mentioned earlier, it’s important to get all the help and advice from people with years of experience in this industry when you’re a newbie; it’ll save you from making the mistakes they and other people have made.
Construction work.
Again, this point will entirely depend on the kinds of property you buy and how deeply you get stuck into the game of real estate. Some properties might be a quick buy with a cheap and easy turn-around; you might be able to do the entire thing yourself or with the help of some friends. As mentioned earlier, of course, it all depends on your level of expertise in the realm of DIY. Of course, either way, there’s every chance that you might have more ambitious plans when you buy a property that’s a “fixer-upper”. You need to think about whether you need to hire contractors, how long the construction will take, and how much it’ll cost.
All of the points mentioned throughout this article have to be applied on a case by case basis every time you buy a new property. There’s not a generalized “one size fits all” method, so it’s important that you don’t get slopping after making a good profit on one property. Make sure you invest that money wisely into your next venture and be just as meticulous and thorough with your work on that one. Again, it’s not always an easy game; some properties might turn over very little profit and, with some properties, you might barely break even. It’s all about finding your footing and playing a very careful, calculated game. Learn to understand the market and don’t ever make rash decisions. Purchasing any kind of property is a huge financial undertaking, and being reckless with property purchases is something that can definitely cripple your finances.
