It is no secret that there is a lot of money to be made from property ventures. No matter how big or small your plans are you can most certainly get involved with an array of development projects. With a strong entrepreneurial spirit, a small start-up income and creative ideas you could be bringing in big bucks by running a property business. You have the power to accomplish your business goals this year and build assets to be proud of. You might want to consider obtaining a business partner to share the load with, as property can be time-consuming and costly. That’s not to say that you can’t make things happen on your own, you just need to be prepared to put the work in. With careful planning and preparation you can choose the type of project which will suit your strengths. Tread carefully when you are mapping out your business plans and make sure you follow every rule and regulation to the finest degree. If you do everything by the book you will be on the road to running a highly successful and promising business. Make sure you closely analyze the risks of each method you look into a go for an idea that you’re passionate about. Find the right investment for you and become the property professional you have always dreamed of being.
One of your first options is to buy a property with the specific purpose to lease or rent it out to other occupants. You should seek out a ‘buy-to-let’ mortgage if you are planning on taking this on, as this kind of bond is explicitly designed for this purpose. If you pass all of the relevant checks you can gain a loan from the bank and use this to buy the property. Of course you will be tied to paying this money back, but your long-term goal will be to pay off the loan and then eventually make a decent property from the rental. You might be looking for a bigger and more specific project to get your teeth into, which includes build to order flats as one of your options. Check out the online guide to buying a HDB BTO for detailed information on this option. Often this could be linked to the idea of off plan investing, when a business person buys a property from a development company, long before the building is even completed. You would be signing a contract after viewing the plans and design but you wouldn’t actually see the physical end product. This can be a very effective money making scheme as the property may well be worth more once it is fully completed.
Another leasing possibility that is out there to be explored is a rent-to-rent scheme. This would involve you paying rent for a property and then renting it out again yourself in order to make a profit. Before pursuing this project, make sure that you’re fully aware of the rules and regulations stipulated by your estate agent or landlord. Sub-letting a property can be a frowned upon rule within a contract, which could end messily if you’re doing it without the due permissions. You also want to make sure that the rent you’re paying is cheap enough for you to be making some income back from it. You don’t want to be setting your rental prices too high as you might struggle to find people willing to pay that. As always with renting it can be as long-term or short-term as the tenants wish, so you might be caught short if you’re unable to replace occupants in an efficient amount of time. Weigh up the pros and cons of each leasing option and see if any of them might be a good fit for you.
Dependable Design and Development
If you’re a little more creative and artistically oriented as a business person, you may well wish to become a professional property developer. There are many ways in which you can branch out into this field of work, so let’s explore the vast options that are out there for you to try. Firstly, you need a really solid knowledge for the local real estate market, including pricing strategies, quality and area information. If numbers aren’t your strong point this might not be the precise project for you, but you can always acquire a partner to take up that side of the business. Being in the property development business can involve anything from purchasing land, planning to build new property, selling properties and renovating existing houses and apartments.
House flipping is now a common venture for many property driven entrepreneurs to take on. This involves buying a property at a low price during a good time for the housing market and then selling it on again for a higher price. This would include renovating the interior and exterior of the building in order to increase its final value. You might risk running into a bad housing market, so your original price actually ends up depreciating instead of improving. You need to evaluate these risks before jumping in at the deep end and make sure you’re knowledge of the area is up to scratch.
There are several approaches to developing a property; both short and long term methodologies have proved to be effective in the past. If you’re looking to take on a short-term investment you may consider purchasing a handful of different properties with loans and then retain them for a few months with the hope of a value increase over a short space of time. Alternatively, you can opt for a long term fix by buying one decently priced property and then focusing on completely overhauling it. You could then sell it on for a profit once the house has been reevaluated. The only thing to make sure is that your figures are all clear and precise. Make sure you don’t cut corners when renovating a property, but equally don’t overspend on unnecessary improvements. Go in with a detailed plan and budget and always stick to it.
A slightly lower risk option for you to try out would be to become associated with a local estate or letting agency. Agents work to set or lease properties, land or business space on behalf of somebody else, with the view to earning commission for each successful exchange. In this instance you may find yourself working for somebody else initially but it will be a good start to building your knowledge of the ins and outs of the property market. You could start small with a job such as this, with a goal to creating your own agency. Once you have built up the knowledge and experience you need, there will be options for you to break-free and start your own business in this line of work.
When looking to invest your hard earned money you can always turn to property and be reassured that there is money to be made out there. Consider all of the options available to you and seek the professional advice you need before diving into the deep end. Remember that money can easily be lost in the property market, but it can equally be made back. Stay patient, motivated and well-informed and you’ll be heading in the right direction. Whether your strong point lies in property design or you are a fierce negotiator there will be the perfect project out there for you. Believe in your abilities and retain a calm confidence throughout each of your endeavors. Success will be waiting for you just around the corner.