Property makes millionaires fast according to the fishanblog the new blog on the block. If you consider the leverage power of this business then there is certainly a case to me made for property business and its true potential. Make no mistake, property business is no different to any other business. Any would be property entrepreneur should be well advised to learn the knowledge before embarking on creating his/her portfolio. Consider the scenario below:-
3 bed corner property on the market for £175k
The factors that underpin any buying decision are:-
1) Condition of the property. The property condition will determine to a large extent the type of mortgage or the loan that need to raise. Whether repairs are needed. If so are they cosmetic or are they major repairs.
2)What kind of mortgage do I need? The type of mortgages that are available include repayment mortgage, tracker mortgage, interest only, buy to let mortgage and one account (flexibly mortgage). Are you looking for a mortgage with the lowest monthly outgoings?
3)Is the property is to be let after the purchase is complete?. How much monthly income will the property generate? Assuming a monthly rental income of £700. How much additional cash is required to service the mortgage commitment every month? It is recommended that you pay less than what you earn. If you earn £700 per month then your mortgage outgoing should be about £600 per month. The extra £100 is your contingency or just in case money which must be put aside for when it is needed for essential or emergency repairs.
4)General rule of thumb, corner properties lend themselves well to conversion to flats. Is that a viable proposition for you? Could the property be let for a short while whilst the conversion plans are put into action. You now have a self-funding asset that you can add to. The added value can be realised via disposal or through the re-mortgage route.
There may well be additional factors in your buying decision.
Where can I go and learn about this business?
There are a lot of companies offering to teach you the entire property investment over a single weekend from start to finish. Prices for the weekend courses range from £1000 to £5000.
The people that benefit from these courses are those who put the newly acquired knowledge into practice by taking action. For action orientated individuals, the £5000 investment is well worth it because such people can make that money back many times over.
There is an alternative for people wanting to learn slowly from someone who in involved in the property business. Fishanblog is maintained by Nazir and this blog is exclusively about property business; it leans towards residential property more so than commercial but the principle is the same. You are invited, encouraged and asked ortold to visit this blog and read all the posts including the latest one. You will learn everything that Nazir does; he talks about his deals and walks through each aspect in detail. For example, read all the stuff about an auction deal that he closed recently, learn about all the problems associated with this deal as well as funding issues orcomplications that he has had to grapple with. Go and do it.
Learn the property business from someone who has made all the mistakes. So you can avoid them. Mistakes Nazir has made. For more information visit http://www.fishanblog.com