I’m Rich and I welcome you on my personal space on the Internet. I created this blog with a single purpose – to inspire you to take charge of your money and help you become a financially successful and independent person.
Property is one of the best markets for investors: it is usually quite a stable market, you can ride out any dips that may occur and you can live in your investment while it matures. Though the vast majority of people will be looking for more than an investment, if you are going into the property market as a pure investor, you need to know what to expect.
There is no such thing as the perfect property investment. You will always have to put some hard work into a property to make it flip and you are also going to pay into the property before you can sell it.
Over time, as you learn the property market, you will find yourself gravitating to similar properties and projects as you discover what your talents are. Whatever you do, you should always start with a small project and build up your experience slowly. This investment is an expensive one to give up.
What to Look For in a Property Investment
For your first property investment, you may also be looking for a home. This is very common but does make the process a little harder because you are effectively signing your family up for living on a building site while you do the property up. However, if you are methodical about how you renovate a property, this shouldn’t be too much of a problem.
The first thing to look for is the soundness of the structure. In your first property you should definitely not take on a building that may not be structurally sound. This is because you never really know how bad the situation is until you start work and you may end up throwing significantly more money at the property than you had anticipated.
If you aren’t sure what to look for, ask for a structural survey to take place. While this isn’t always going to show every problem, it is a good way to indicate the sort of risk you are taking on. As a beginner, you might be okay with building an addition or replacing a roof but should certainly not do anything further as this will cost a lot of time and money. Plus it is unlikely you would be happy to live in this kind of property while you work.
In essence, what you are looking for is a property that needs a little more than TLC. Look beyond what is in front of you to see the potential for development. For example, the plasterwork on the wall might be worse for wear, but this is fairly easy to fix up. The garden is another area ripe for development and even a tidy up can make a huge difference.
How to Sell a Property Fast
Once you have renovated your property to a high standard, you will want to flip it. This means sell it on at a profit. Though there are lots of alternatives like renting the property out or even renting it out for events depending on the size of the property, flipping a property is the fastest way to make a profit.
Even with a high quality finish, you need to know the tricks of selling a property quickly and you should think about how much return you want for your efforts. If you are willing to take a smaller return to sell the property faster then you should price it just below the value to get as much interest as possible. However, if you are willing to wait a little longer, you may make a bit more profit.
Advertising your property is key to getting the best results. You should always make sure that the photographs you use to show off the property are taken in bright sunlight (if possible) and all the lights are on. This will make the rooms look much more appealing. You should also tidy away any of your own things to neutralize the space or dress the room with rented furniture if you have bought the property to sell. You can learn more tips online but these are the basics.
Finally, if you are looking to sell your property fast, it may be worth asking a couple of realtors to compete to sell the property and be there for all the viewings. This is a good way to maximize your chances of getting a fast sale as the agents will be hungrier in the competition.
Reinvesting Your Money and Starting Again
Once you have flipped your property, you can start looking for your next project. If you can, you should look for something fairly similar to what you did first. This way, you can build your experience and you will have a clear plan for how to flip the next property. Though you might think you are ready for a much bigger project, be sensible about your money and don’t take on too much.
Depending on the aims of your property flipping, you may wish to reinvest all your money, including the profit or just reinvest a portion of it and put the profits into a different investment. A smart move is to invest a portion of the money and hold some back, especially if you are doing something a little more adventurous. Over time, building up your money this way will hopefully mean that you can settle into a permanent property with your family and flip separately.
Flipping property takes time and money but can offer some really good returns. If you can learn a trade like plastering or floor laying, you will certainly make more money as you will save on the cost of tradesmen. The more you can do yourself, the further your money can go, but you will need to spend much more of your own time on the property.
Property flipping isn’t for everyone but if you are passionate about homemaking and have a good eye for interior design, it can be a brilliant hobby as well as an investment opportunity.