If you want to make more money in property, more quickly, here’s three things you can do:
Number One – buy a property for less than its true value, in other words at Below Market Value (BMV) or at a bargain price.
BMV is highly subjective. But at any given time, in your investment area, there will be sellers who are more interested in getting a deal and selling than in getting the best possible price. Why? Because life happens, and sometimes they just need to get shot of the property. Your job as a property investor is to find those deals. It might not be easy, but it’ll be profitable.
Number Two – buy a property where you can add value, and where the cost of adding value will be less than the amount of value added. That’s why I particularly like buying properties which need a new bathroom and/or kitchen (better if it’s both) as adding a new kitchen and bathroom disproportionately add value over and above the cost, especially if you know how to do it cost effectively (cheaply) which a lot of people don’t.
I’ll also do windows, and upgrade or add heating as necessary.
Number Three – buy in an area where there’s a possibility or, even better, a probability of greater than average price appreciation. This could be buying in a cheaper area which is close to a more expensive area in the hope or knowledge that over time the cheaper area will gentrify as demand for the more expensive area increases and spreads out.
Or it could eb knowing new amenities will be provided like new roads and transport hubs, or new school or hospitals, or a new shopping centre.
Of maybe you know that new employers are coming to the area.
In my experience, many investors use one of these 3 ways to make money more quickly, and some use 2 of the. Very few use all 3.
If you are only using 1 or 2 of them, number One and Two, are the most reliable as they are in our control. Number Three is the most unreliable, as market movement are out of our direct control. Solely buying properties in the next property ‘Hot Spot’ is really ‘speculating’ and is uncertain, and I wouldn’t recommend doing that in isolation to Numbers One and Two.
Here’s to Successful Property Investing.
Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
https://thepropertyteacher.co.uk
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to:
https://thepropertyteacher.co.uk/the-successful-property-investors-strategy-workshop