Everyone thinks they understand how property development works and that given enough money they would be able to create a mini empire for themselves, but it’s not that simple. There are several key factors that have to be taken into consideration, when you embark on buying property and building up a rostra.
Let’s take a look at what they are:
The location of where you buy your property is incredibly important. Avoid the centre of an already pricey area as you are unlikely to make a profit this way. A good location is somewhere on the fringes of a good area that, in time, can become part of that good area. Bear in mind that close proximity to good schools and useful amenities is also important.
Money is made when you buy not when you sell:
You make money when you buy a property rather than when you sell it. Thus, it is essential to pay the right price for a property.Therefor when you negotiate a price aim to get as much money knocked off as possible. Look careful at what the contracts stipulate with regards to planning permission as a few extensions later you could seriously increase the overall value of your home.
Find an interested seller
It may sound cynical but the more desperate your seller, the cheaper your purchase will be. Do a background check on prospective sellers, Estate agents will have this background information about why someone is selling. Anyone who is selling because they are getting divorced, moving abroad or going bankrupt is likely to sell quickly and at a knockdown price.
We are an estate agents in Walthamstow, committed to providing excellence in service to buyers and sellers alike. We are ARLA accredited and provide you with all guidance you need throughout your journey.