One of the most commonly cited aspirations for the ambitious and entrepreneurial is to make a mark on the property markets. Thousands of people aspire to buy and sell homes, creating dream properties to fund their dream lifestyle.
Of course, as with most things in life, it’s easier said than done, and very few prospective property developers achieve the turnaround they desire. Usually, this is because they’re approaching things the wrong way. Making money is a talent, and it’s one that has to be applied to every aspect of the buying and selling process.
If you’re dreaming big, then here are a few tips to help you achieve your goals…
#1: Look for Projects
The old adage that you have to ‘speculate to accumulate’ rings very true when it comes to the property markets, and if you want to make a lot of money, then you need to be willing to spend a fairly large sum on renovations that will increase your overall profit margins. Very few houses and flats represent an easy money making opportunity, and if they do, other purchasers are usually willing to pay more than you to buy a finished property, and spare themselves the time and effort involved in implementing improvements. Thus, if you can find a diamond in the rough, you could discover that your selling endeavors prove to be highly lucrative.
#2: Spend a Lot to Make a Lot
A second point to be aware of is that you need to have a relatively large budget in the first instance to make a lot of money. The cheaper a property is to begin with, the lower your profit margins are likely to be. This is simple logistics, as less expensive properties tend to be less desirable for a number of reasons, such as their location or size, and many of these will be unchangeable. Thus, although you may pay more for a rundown property in a more desirable area than you would for a well-kept yet inexpensive house in a less desirable location, the former would still be a safer bet for aspiring property developers.
#3: Choose Your Estate Agent Wisely
Thirdly and finally, make sure that you consider the selling process as a whole, as opposed to focusing solely on the property that you buy. You’ll find that there are lots of clever ways to save money, from shopping around for contractors to weighing up the various agents that are available for you to choose from. Indeed, depending on the value of your renovation project, you could save hundreds of thousands of pounds just by choosing the right company to market your home. Every penny you save increases your profit and allows you to build up your fortune faster.