You’ve watched those TV shows where people buy run-down houses, do them up and then sell them on for more money than they spent. It looks like a pretty sweet job, so long as the market is right for it. Or perhaps you like the idea of keeping the properties and renting them out. You’ve decided you want to become a property developer or landlord, but how do you get started? It’s not like other careers where you can do the required training and find a job. You usually need a big chunk of money to start you off. Money isn’t the only thing you need though. There are other skills and knowledge of certain subjects that will help you succeed.
Own Your House First
You usually need to own your home before you can take out a mortgage to buy another. This goes for second holiday homes, and for homes you plan to let or sell on. If you can buy a property outright without the need for a mortgage, you won’t have to worry about this. But if you have enough cash for that, you likely already own a home.
Have a Handy Skill
If you have a practical skill that will help you do some of the work on a property, this is going to save you a lot of money. Electricians, plumbers, carpenters or painters and decorators can put their technical know-how to use. The more you can do yourself, and do it well, the less you need to pay someone else to do. Someone who can fix-up a house with very little input from anyone else will save a lot of money – but only if they get it right first time.
Decide Whether to Let or Sell
You should decide whether you want to sell your properties after renovating them or keep them and rent them out. You could do a combination of both. Remember that letting your properties will put you in charge of their upkeep. Although you could hand over this responsibility to an estate agent, it will come at an extra cost. However, if you buy-to-let your income won’t rely as heavily on the condition of the housing market. With selling, you can earn more money over a shorter amount of time, but whether you can make money will depend on market conditions.
Do Your Market Research
It’s essential that you research your market at all stages, from how much to pay for a house, to what renters and buyers are looking for. When you deal with estate agents in Rayleigh or your hometown, be sure to negotiate on prices when you buy. Research the areas people are looking to buy and rent in to ensure you can make a return on your investment.
Doing these things will help you succeed if you decide to be a property developer or landlord, but remember you need the finances too. A buy-to-let mortgage might help you buy your first property if you’re letting.