Property Development 101: Making Money As An Amateur
Many people choose to explore side hustles as a way of supplementing their income. The world of property development is an exciting sphere in which to invest some of your savings. You may choose to purchase a fixer upper from an auction, secure a buy to let, or perhaps more excitingly, buy a plot of land on which to build some homes. There is a severe shortage of high quality property across the country, and with rising populations, you could tap a lucrative market by building your own bricks and mortar. Take a look at how you can make money from the world of property without having to give up your full time job.
It seems like common sense, but it’s vital that you get your numbers right. If you purchase a pad for more than its market value, it will be incredibly difficult to turn a profit when you come to sell it. You also need to ensure that there is money to be made within the dwelling you choose to buy. If the house is in an undesirable area, it doesn’t need any work doing to it, or it is structurally unsound, then it doesn’t matter how cheap you buy it for, it will be a struggle to sell when the time arises.
If you choose to build property from scratch, the chances are that you will have no idea where to start. Unless you have a degree in construction or you are a builder, there is a wealth of knowledge that you simply won’t possess. Get in touch with a quantity surveyor and employ a project manager to advise you of legislation, budgetary requirements and schedules of work. If you have a full time job that you aren’t willing to give up, you need to secure the services of an on site construction manager who will oversee the building work, advise you of costings and help manage the tradespeople you will have working on your project. It’s vital that you see your property development as a business so stick to your budget and timings as much as possible. A team of professionals, while a little costly, can help you achieve this.
Don’t Get Personal
It’s important that you don’t become too personally involved. When it comes to decorating and furnishing the pad ready for sale, don’t install the shocking pink bathroom suite or paint the dining room a deep damson hue. This is too individual and niche and will limit the market you can appeal to. Take a step back and apply a more neutral palette, even if you find it boring. Your potential buyers will appreciate seeing a blank canvas on which they can make their mark.
While large sums of money can be involved, and you may need to take out another home loan to fund your financial project, the returns can be lucrative. If you want to explore a side hustle that could top up your savings and see your disposable income increase, then the world of property could be a viable option.