If you’re wondering how to build a property portfolio, carry on reading our guide to help you get your property business on the path to success.
Although the property market went through a rough patch a few years ago, it seems that the industry is finally starting to pick up again. Property is expected to rise over 25% in the next five years and with the introduction of Government schemes, it provides greater access to finance for buyers, making now the perfect time to become a property developer.
When renovating a property, you will need to pay for certain costs including a survey throughout the property.
1. A property development business plan
Even if you are looking to join this industry on a part time basis, it is a sensible idea to have a full business plan. Here you will be able to set specific and targeted aims about what it is you aim to achieve from this venture. It should also include guidelines about how you set out to reach these goals.
2. Buy-to-let or buy to sell?
In your business plan you will need to identify if you are going to rent the properties out or if you are going to resell them. Buy-to-let strategies are more long-term and will allow you to build your property portfolio up that could eventually replace your current salary. View more information.
However, buying a property to later sell it will quickly increase your capital. You will be much more dependent on the market conditions and is slightly more risky, but does offer an instant return on investment.
3. Ensure you have a suitable property development finance in place
Becoming a property developer will require you having money and enough to start and finish your project. It should also be noted that until you sell your first property, your money will be tied up making it almost impossible to expand. Contact us for more information.
You must ensure that you have finance options in place. This can be from banks or private lenders.
However, if you have gone with the bank route and have been rejected, your career doesn’t have to stop. Private lenders can offer more flexible finance than what a bank can. Hunter Finance based in East Sussex has streamlined their lending process, so they can offer developers loans from their private funds, enabling them to offer finance fast than banks. See their lending process.