If you’re passionate about property, have you considered this as a way to earn money?
A business in property developing can be incredibly exciting, each project is different to the last and transforming an old and unloved house into someones dream home is always satisfying.
There’s the opportunity to earn plenty of profit, and you will learn new things along the way too. However it’s not all plain sailing, and there are things you need to be aware of before going down this route.
Here are just a few things to bear in mind.
Do You Have The Funds To Get Started?
Flipping houses can be incredibly lucrative, you have the opportunity to earn thousands in profit in a matter of weeks if things go to plan.
However, you need money in the first place to get started on this, and will need enough money to purchase and renovate your first property to turn a profit.
As you sell each place and earn larger profits, you can take on bigger (and more) projects. But you need that initial sum of money to get started to begin with and don’t overlook things like legal fees, surveys and more.
If you’ve got savings and are looking for a relatively risk-free place to invest then the property can be a great choice. Unlike stocks and shares for example which can be relatively volatile, house prices almost always increase year on year and property is always going to be in high demand.
Therefore it’s usually easy to sell, and most cases will allow you to make a healthy profit if you go about things in the right way. If you do have the money to get started, this can be a fantastic way to turn a sum of money into a lot more, and you’ll get a far better return than even the best high-interest savings accounts.
Are You Knowledgeable Enough?
Knowledge is power, this is true when it comes to just about anything and property is no different. While it’s completely possible to learn as you go and go into flipping houses without much knowledge and still do well, you minimize your risk greatly by being knowledgeable.
Do you know what the ceiling prices are for different areas, and what certain types of buyers are looking for in properties?
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The more you know, the less chance you have of making a fatal error. You won’t overlook certain opportunities, and you won’t be stuck with a house that won’t sell due to a bad decision you made.
You won’t overspend and minimize your profits. Before taking the plunge, it’s well worth learning as much as you can about the property market and real estate in general. If this is going to be a long-term business for you then it’s always going to be money well spent.
There are all kinds of peaks and troughs in the market and lots of things can impact property prices and therefore your profits. You need to know about the past, present, and future of real estate and understand it inside out to stand the best chance of success.
Do You Have Access to Reliable Tradespeople?
If you’re going to be buying and selling properties regularly, you need to be in and out as quickly as possible. And to do this, you need access to great tradespeople who are quick, reliable and charge a good price so that you’re still able to make a profit.
Electricians, plumbers, gas engineers, plasterers, painters and others are all on the list of trades you might need to use. Depending on how successful your business is, you could employ these tradespeople directly, otherwise, you need good contacts and connections to be able to hire the right people when needed.
Without the right contacts, you could be left with a shoddy job, or your timescales could get pushed right back. If you get charged very high prices then this, of course, takes a big chunk out of your profit.
If you have a love and passion for property and go about things in the right way, you can make excellent money as a property developer and turn it into a full-time career. While it’s not plain sailing and each project will throw up issues, you can earn money much more quickly and easily than most types of jobs!