Looking to finally start your property business? Or perhaps you’ve already begun and want to take it to the next level?
If that’s the case, then it’s time to figure out the property strategy or strategies you’re going to settle on. Having said that, there are so many different strategies out there that it can be difficult to know which one or two to settle on.
Well, before you make any decisions, sit down and consider these five key points first:
1. Location
Where you live is important, especially if you’re considering a refurb strategy or investing in HMOs. It may be that there are already plenty of traditional HMOs where you want to invest. If so, tweak your strategy to en-suite upmarket HMO accommodation instead. You might not always be able to do this though – simply because there may not be the demand. If there isn’t, perhaps there’s another strategy that would work better there?
2. Time
Consider how much time you want to put into your property business. It may be that you want to keep your day job and invest in property as a side-line. That’s fine – so long as you get a strategy that fits. A buy to let or two would work. Other strategies, such as refurbs or conversions will need you to be more hands-on. Even Sourcing takes up a lot of time, since it’s all about networking and carrying out viewings before others come along.
3. Money and cash-flow
Contrary to popular opinion, property isn’t a ‘get rich quick scheme.’ Even when Sourcing, you may have to wait three months to derive any income from your hard work. A conversion will involve finding opportunities, pulling together builders quotes and surveys etc – and that’s just the start. You’ll need to wait 10 weeks to exchange and complete, around four months to convert and another three months to sell. That’s eight months without an income – and something people typically don’t take into account.
4. A strategy that interests you
If managing tenants is something you don’t fancy then don’t go into HMOs – or, at least, employ a letting agency to take care of that side of things (bearing in mind they’ll take a heft whack of your rental income for their time).
5. Fit in with your goals?
Not every investor wants to leave work and give everything they’ve professionally trained for to go into property. So, ask yourself, if the strategy you’ve chosen aligns with your property goals. If you just want a property for your son or daughter when they go off to university or to use it to build a pension fund, then stick to a refurb or buy to let strategy.
Get in touch
Here at Sourced, we have experts with plenty of experience in a range of different strategies to help guide you with whichever areas interest you. We also provide training and step by step support to make sure that whatever you chose, it ends up a successful strategy. Take a further look at what we offer by downloading our prospectus today..
Author
Chris Kirkwood
