Mo’ Money, Less Problems: Making Money From Your First Property
When you’re saving for a house, it’s a lot of scrimping and saving and generally just having to cut back on your whole lifestyle. But it’s a short-term misery for long-term gain. Making money from a house, especially if you are part of the buy to let approach to purchasing homes. But for those that are just starting out on the property ladder, the prospect of making money off your first property may sound like a pipe dream, but with some careful planning, it’s something you will be able to carry off without worry.
The first thing to think about is your location. The best approach to take if you’re looking at a property with the sole purpose of selling it on is if it’s in a desirable area. Most people go for the cheap option because it’s a house they won’t be living in anyway, so they can just do it up and sell it on. But this method seldom works unless you get a house that’s in such a bad state that the estate agent needs to get rid of it straight away. Look at the areas where there is potential down the line for more properties. Are there up and coming commuter belt towns that are pretty derelict right now? The economy will be a handy pointer in some ways, and depending on where you are in the world, if you pick a house that’s within commuting distance of a big city, you can get a house for cheap and you’ll be able to make the most of it in a few years.
The second thing to consider is your funds. The cost of renovation is a big thing, and if you think that you can do a house up “for cheap” then expect to have offers to match. There are plenty of organizations that specialize in “house flipping” where they help you to renovate a house so it can be sold on for a good price. Companies like FlippingHouses101.net work with homeowners so they can maximize the potential for any type of home. And if cost is a big issue in this respect, you may be better off working with a professional to get the most out of the house. Funds will always be a big issue when renovating, and it can be an all hands on deck approach to renovation, or you can fix it up quick and sell it on cheaply. It depends on what your intentions are.
The other thing to bear in mind is the negotiation. Whether you’re buying your first property or selling it on, learning the skill of haggling can save you some money. Do your research and make sure you have done the math because if you encounter estate agents that give the usual spiel (“the vendor won’t settle for less than…”) because you can be held over a barrel if you don’t figure out what the property value is for you. It’s really important to not get emotionally involved in these circumstances, that will give you the upper hand in buying or selling.