There is money to be made in property, all you have to do is find the best strategy that works better for you. Below are the top 3 strategies that you can venture into.
House in multiple occupations also knows as a multi-let is where a property is rented out by the room rather than to a single person/family. The definition of an HMO under the Housing Act 2004 states it is, “any property occupied by five or more people, forming two or more separate households.”An HMO will increase cash flow and Return On Investment (ROI). A typical 5/6 bedroom HMO will generate £750 to £1500 net profit per month. You can buy property to do this strategy or do it on a rent 2 rent basis. The secret to making an HMO property work is by creating and increasing space. A large living room can be split into two to create extra bedrooms – allowing you to make extra money.
Things to know before investing in HMO:
- Understand the local area. It is important to know the needs/ demographic of your chosen gold mine area. The best HMO’s tend to be occupied by students/professionals.
- Licensing: contact your local council and check if you require a licence for your property. – * different councils have different rules and regulations surrounding HMO’s*
Top Landlord Responsibilities :
- Annual gas safety checks
- Electric – must be checked every 5 years
- Fire safety: fire doors, smoke alarms, carbon monoxide alarms
A flip is where you will buy a house/flat carry out a refurb and sell it for a higher price than you bought. So you are essentially trading property rather than holding property. This is good to build up a good pot of cash.
flips are a common way of creating equity – also known as the BRR (Buy Refurb – Resell) method. This method works well with BMV properties (Below Market Value) – When you invest in BMV property it is essential that you secure equity at the point of purchase rather than buying and hoping that the value of the property and your equity increases.
Things to consider:
- Spend money on improvements that add value e.g – new bathroom, new kitchen,
- Make a clear budget of how much you want to spend –
This is where you can rent/ buy a property from a landlord and have an option at some point in the future to buy the property at an agreed price now. You have the option but not the obligation. A simple buy now -pay later strategy.
A lease option allows buyers with no down payment to build up a down payment while still enjoying the comforts of being in a house with land. It also gives you the chance to get to know the neighbourhood and neighbours before signing the dotted line for ownership.
Research is key to your property success! If You have any questions please feel free ask in the comments below!! Learn more about property join us at one of our FREE Events – Register via this link: https://assetsforlife.co.uk/our-events/