Entering the housing market full of experienced players and unpredictable events is never an easy task. But if you stick to a plan and apply the right strategies, you can turn it into a fruitful business. Home Nation brings you top tips on how to get into the housing market and become a top player in the business.
The first thing you need is a plan. Make a list of your requirements, your expectations and your possibilities in order to better understand your potential and the market itself. If you lack funds, get a loan or set up a property trust and use them to invest.
The next thing you need to do is examine the market and learn as much as you can about it, about its potential risks and gains. Read as much as you can about housing market economics, track market trends and stay in touch with the latest news.
For a starting investment, you should target a small family house. When choosing the right one, pay attention to its condition, room sizes, plumbing, insulation, interior layout, number of bathrooms, number of parking slots or the size of the garage, its neighborhood and location. You should target houses which are new or in a decent state and can be rented as soon as possible with minimal expenses.
When deciding to purchase, you should ask around if there are some government schemes and programs that help first-time home buyers. For example, if you plan to own a newly built home, you could borrow up to 20% of the purchase price from the government. Your only requirement is to make a 5% deposit and your mortgage would make up the rest. There is also an option called Shared Ownership in which case you buy a share of your home and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.
After purchasing your first house, your next step is to hire the right agent. A good agent is one of the most important assets for every housing market player. The best places to search for them are LinkedIn and other social media. Ask them for sales-activity reports, existing listings and their time-on-the-market averages. An experienced agent is easily recognized by his knowledge of the best times for open houses and how to initiate a price when the market allows it.
Once you get the hang of it and build up your budget, it is time to move on and expand your business. For a second investment, choose a house which you can buy for a cheap price, renovate and then sell for a much higher value. Another tactic you should consider is buying either land or built houses in areas that are going through a makeover. In both cases, you can significantly increase your profit.
Finding your place in the housing market may be a challenge for most starters. But with the right planning and execution, you will quickly get the hang of it. And with some time and patience, you will be able to work your way up and become one of the top players on the market.
Great advice one thing that I would like to add is when I did my first house deal I made some underestimations that ate into my profits like realtor fees. I have since stop using realtors and paying just a flat listing fee to have the property listed on the mls and have saved many thousands in realtors commissions.