Tag Archive | property investments

Property Developer Strategies: The Sinking Market

Property development and real estate are fickle businesses. One minute, you can be on the top of the world and feel like nothing will ever bother you. Your business is booming, your portfolio looks fantastic, and you couldn’t be happier. Then the next day, everything is crashing around you.

There is an element of property developing that is always going to be dependent on a factor you can’t control: the economy. House prices are one of the biggest indicators of whether or not an economy is doing well. If they begin to sink, it suggests a lack of consumer confidence, meaning that storm clouds are gathering on the horizon.property

So when you are a property developer, there is an element of your business that is totally outside of your control. You are subject to the changing winds of a major economy, and there’s not much that you – personally – can do about it.

If you’re already trying your hand at property developing or are still at the point where you’re searching for new condos to pique your interest, then it’s worth having a plan in case the economy begins to show signs of strain. What do you do when prices are crashing but your entire business is built around making a profit off the sale of real estate?

Option One: You Wait It Out

The best property businesses have a contingency for this kind of scenario, in case of a delayed sale for any reason. It’s always a sensible way to structure your finances; if you plan for an immediate sale, then you are immediately vulnerable. It’s always wise to factor at least three months of extra expenses for running the house (such as the mortgage / taxation you may be liable for).

In the worst case scenario with the national economy however, you might find yourself waiting for a lot more than three months. Waiting this out is probably the wisest move, but that depends on you having the funds to do that. If you don’t, then it’s time to move on to…

Option Two: Sell and Run

Prices might be bad right now, but what if this is just the beginning of a downward slope? If the signs are bad, then it might be best to break your investment early and get out before things get even worse.

This might mean losing money, but what you need to figure is whether this move will stop you losing even more money in the future. If you suspect the blip is just a temporary problem, then this is an extreme course of action – but if the signs are that the economic problems are global, then it might be time to cash out.

Option Three: Proceed As Normal

Even when prices are down, people do still buy and sell houses. Any good property investments business will have a margin; obviously you want to make the most money as possible, but reducing your sale price (while still keeping a healthy profit margin) is something a well-structured business can survive.

 

 

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Pass Go With Your Property Investments

 

Do you have what it takes to survive in the property investment industry? You might think you do and we’re sure you have at least one friend who has told you how easy it is but don’t be fooled. Investing in property is always a risky venture.

real estateHowever, the rewards might just make it a risk worth taking. It all depends whether you know how to thrive investing in property.

If you’re going to win this game, there are a few things you need to do.

 

Careful With Costs

One of the biggest mistakes that you can make when investing in property is to not take all the costs into consideration. A lot of people forget about some of the key costs and focus on the main ones instead. For instance, you might be aware that you’ll need at least five percent of the overall property value for the deposit.

However, you could be investing in an apartment. If that’s the case, you should consider whether you’ll be charged money per month by the owner of the building on top of the mortgage repayments.

Getting The Right Price

How much are you paying for the property? You need to be cautious of overspending on a property that isn’t worth the money. Make sure you get a full survey of a building before you buy and look at any issues that might need fixing. If they are going to be too expensive, you should back away from the investment. If you don’t, you could end up in a position where you’ve actually bought the property at a loss.

Choosing The Right Location

Where should you buy the property? If you’re going to be responsible for maintenance, you should be purchasing close to where you live. However, if you’re willing to hand the job of maintenance off to a company that you trust, you can buy anywhere.

If that’s the case, you should be looking for real estate in a stunning location. This will push the value of the property sky high and ensure that selling or letting, you make a lot of money.

Partner Up

Due to the high cost of property investments, it might be worth considering avoiding going solo. Instead, you can work with a partner to sell the property. Or perhaps buy a luxury real estate investment with a group of people. You will need to choose your team carefully, but by doing this, you can limit the costs and the potential risks while still ensuring massive profits are the end outcome.

Patience Is A Virtue

Finally, at some point during your property investment, you will feel like things aren’t going your way. Maybe, the property isn’t selling at the price you’ve chosen. Or perhaps, you’re not getting enough interest from renters.

The trick here is to be patient. Eventually, someone will come along who is interested in your property at the right price. Remember once you begin this investment, there’s no fast way to jump back out of it. You must commit and prepare yourself for the bumps on the road to success.

 

 

4 Top Tips on How To Win In The Residential Property Market

If you’re tempted by the idea of investing in residential property, then it’s obviously going to feel like a pretty daunting challenge to rise to. The most experienced property investors out there will have had years to learn from their mistakes, and formulate a method that gives them the best chance of success. If you’re not quite there, here are some rules you should follow to get the highest possible returns.

residential-property

(Pixabay)

Buy Property That Will Grow in Value

I know this sounds obvious; after all, owning something that increases in value is the most basic principle behind any kind of investment. However, there are countless people who still manage to make rash decisions when they first get started in property investments, and wind up sitting in properties which do nothing but stagnate.

Look for residential properties which are close to a thriving business district, schools, beaches, and leisure facilities, as these will have the best chance of piling on value. New build developments such as the ones from Serenity Homes also usually have bright futures.

Create Equity Through Renovations

Easy, low-cost renovations, such as a fresh paint job, new flooring, extensive landscaping and so on, will have a huge impact on the value of property, raking in equity with minimal strain on your time and money.

As soon as you’ve polished off the purchase, you should be making plans to carry out some home improvements and generate some instant equity. Just make sure you’re doing your homework beforehand though.

Certain additions, such as pools or ultra-modern features in a rustic house, can in fact sap the value of a home, rather than bolster it.

Give Yourself a Safety Net with Refinancing

When your property begins to grow in value, it’s a good idea to refinance it, and give yourself a buffer which will act as a financial safety net. When you protect yourself through refinancing, you’ll be able to rest easy about the future of your investment to some degree.

All too often, would-be investors fail to take this step, hit some rough waters, and find themselves unable to keep up with mortgage payments.  If you get yourself into a forced-sale position, the best price for your property will be out of your reach, and you may find yourself having to deal with expenses like capital gains tax.

Get an Independent Valuation and Don’t Get Emotional

If there’s one mistake in property investment that you should avoid at all costs, it’s bringing your emotions into the picture. Countless investors let their emotions get the better of them when they’re searching for prospective investments, and end up buying a property for far more than it’s really worth.

You’re probably not experienced enough to value property on your own steam, so consider getting an independent valuation done. While these aren’t exactly cheap, it’s the fastest and most effective way to protect yourself from paying too much, and shooting yourself in the foot further down the line.

When you dive into the real estate market, be sure to keep these tips in mind!

Getting Your Customers to Come Back, Over And Over Again

 

customers.jpgAs any small business knows, it’s a heck of a lot easier to get business from existing customers than it is from new ones. So it would make sense that companies focus their efforts on making customers come back around like boomerangs. But do they?

Retaining customers is a tricky business. That’s why we’re going to look at some of the advice from people who have built companies based on keeping their best customers. Here’s what they suggest.

 Make Keeping Customers as Important As Getting Them

Noah Fleming is a marketing expert and author of books on keeping customer loyalty. Over the years, he’s built up an expertise in what counts for keeping customers, and what just doesn’t work. Over time he’s come to a rather counterintuitive notion. He says that companies shouldn’t bother focusing on trying to “close” the deal.

Instead, he says, they should concentrate on doing all the little things that turn client acquaintances into relationships. He worries that the word “close” is unwittingly an attempt to bring the relationship to an end. Rather he says, companies should focus on keeping their relationships open-ended. Then customers will feel as if they can come back whenever they need to.

Research Abandoned Shopping Carts

All businesses know that it needs to be easy for customers to make payments. But, as businesswoman Meagan Rhodes points, firms don’t always make it easy. Many businesses spam their customers with landing pages, hyperlinks, and annoying captcha boxes.

But Rhodes suggests that companies avoid all of this and take advantage of clients who want to make impulse purchases. It’s important that businesses install some kind of total merchant services to make payments seamless. If they do, Rhodes says that their customers will keep coming back.

 Focus On How You Make Customers Feel

With the rise of the internet as a global online market, businesses can’t rely on location anymore. Instead, they must use their brands to differentiate themselves from their competitors. A person who understands this more than anybody is Daryl Travis. Travis runs his own digital marketing research firm.

He’s seen hundreds of brands come and go. But he’s noticed that the most successful are all about the way that people feel when they come into contact with them.

One of the things he recommends is that the senior management team thinks carefully about what working with them is like for their customers. What are they looking for? And what emotional reality do they want satisfied?

He says that you have to internalize your customer’s feelings to understand where your brand sits. That means experiencing empathy and going through what customers experience when they interact with your business. It might sound new-age, but this exercise deepens your whole team’s understanding of the client experience.

Relate To Them

Keith Lee is a customer service manager at a technology company near Nashville. His advice is to cultivate relationships that feel meaningful and genuine to both you and your customers. His advice? Repeat their name when you meet them in person and over the phone. Mold yourself around their personality type and adapt if they are forthcoming or shy.

Reflect as much of themselves back at them as possible as a form of subtle flattery. And then try to find out some detail about where they live or what sports they like. These little snippets can then be used to build rapport and work out if you have any mutual connections.

Don’t Just Offer The Product

According to Calvin Brown, too many companies just offer one thing: their product. But if companies want to retain customers over the long term, they need to do more than this. Brown is the CEO of a property investment firm. His primary product is his portfolio of potential property investments. But this isn’t the only value he offers his customers.

He also offers them a range of free resources on property investments and educational materials. Thus, Brown’s business is actively helping customers make more money on the investments they make through him. This, in turn, helps to generate repeat business, since customers are both better off and feel better about his service.

Like many up-and-coming companies, Brown doesn’t focus on high-pressure sales. Instead, he focuses on customer experience and offering value at every step of the transaction. For instance, customers get a discount whenever they exit any of their investment properties.

The bottom line is that being a resource for your customers is important. Firms need to provide a pleasant buying experience, and if they do, their customers will keep on coming back.