World Property

Despite the recession and the housing market barely moving it’s still possible to make money out of property. The best way is to focus on the “value added”: what value you can add to a property through development. For example: you buy a house for £70,000 that’s been lived in buy the same elderly couple for the past thirty years. The house needs a lot of work like double glazing, a new central heating system, and redecorating, but if you do a good job then the house could sell for £120,000. You therefore have to make sure that you can improve the house cheaply, while maintaining the level of quality. Once you’ve bought the property imagine the heating system costs £5,000, the double glazing costs, £3,000 and the redecorating another £3,000. This means that if you manage to sell the property after 4 months of work then you’ve made a £39,000 profit!

The housing market might be stagnant but by adding value to a property and brining it up to date you can increase its value and still make money in property.