There are all sorts of reasons why one might wish to get into the property business. It could be that you are disillusioned with your current job – you do not feel you are reaping the financial rewards for how much work you put in, or perhaps you would prefer a line of work that has tangible results. You could have come into some money, and are considering the best way to invest it, or you could simply be following in the footsteps of a family member.
Whatever the reason, you’re going to need some pointers. The property business is a field that fluctuates with the world’s economy, dips and dives with political change and, as a result, is not for the faint-hearted.
However, with a little help from some friends, and possibly a loan, you can succeed.
Follow some simple steps
Do not try and take on any complicated builds or renovations as your first project. Being able to follow some simple steps to guarantee success will be made much more difficult if you are tackling a ruined farmhouse or building a six-bed mansion.
For your first project, try sprucing up a two-bed townhouse and selling it on for a small profit, to ensure you are learning little by little and are capable of breaking into the business with bigger builds. This also starts off what is sure to be an impressive portfolio.
As in any industry, establishing contacts and networking is essential. These contacts can help you in the property business in a number of ways. Firstly, you could touch base with any friends or family who already have a property portfolio to ask for some tips and tricks for starting out. Secondly, it will be useful to have tradesmen as close contacts, such as electricians and plumbers. This will be a mutually beneficial relationship. The joiner, for example, will be pleased to have guaranteed work from you, while you may enjoy lower rates from them.
Make time and gain experience
If you are currently working in another job, attempt to put a little time aside for gaining experience before you jump into the property business. This could be anything from helping out a friend with some home improvements to experiencing property auctions first-hand, so that you are not overwhelmed when it comes to the real deal.
Property development and refurbishment loans
If you are in need of some property development finance help in order to get started, property development and refurbishment loans could be the answer. These loans are likely to be worth around 70% of the gross development value (GDV) and start at £50,000.
Loans such as these can be lifesaving when it comes to property development, and will allow you the freedom and flexibility to renovate your purchases as you wish.
Get stuck in
In the end, guides and advice are all well and good, but there is no substitute for simply getting stuck in. Purchasing your first property and trying the industry out for yourself will be a huge learning curve, but one that should bring you satisfaction, and hopefully, a return on your investment.