Start Your Year Strong: Tips to Thrive In The Real Estate Market

 

The year has just started and you already have a huge to-do list! Join the gym (actually use the membership this time), improve your skillset with advanced training, start a new course, embark on your new book reading regime, update your CV or LinkedIn profile, start an entrepreneurial venture, make travel arrangements, buy a new home, invest in property ventures, start a blog, Youtube channel or podcast or even write a book, the list goes on and on

Let’s take a look at three important real estate aspects relating to beginners, experienced investors and property owners thinking of selling.

Beginners - We Got You Covered!!

I know what it is like. I was there in 1992/93 wanting desperately to get my foot on the property ladder, fed up with renting and just having the burning desire to have my very own property. But don’t despair, here are a few tips that helped me and I’m sure will help you too.

Have a very strong why.

Here are some thought starters…
Financial freedom, security, passive income, building a legacy, flexibility, fulfilling your dreams of owning your own property, retirement planning, housing loved ones, generating income for yourself, your children, charities and other great causes.  

Whatever it may be write it down and refer to it daily so you are constantly reminded why you are relentless with your pursuit to get started in real estate and that you will keep going regardless of the challenges you face. 

Start with a free webinar which can teach you the basics and progress to paid courses when you have had your questions answered, are more informed and have built up your confidence. 

Pro Tip: Get rid of the learning curve by working with an experienced mentor. Getting a mentor can increase your chances of success by up to 75%.

Existing Investors - We Know What You Want!

I will let you into a secret. When it comes down to property portfolios there are 7 important aspects to be considered:

1. Is the portfolio doing well?
2. Have the properties increased in value?
3. Can equity be released and leveraged? 
4. Are all of the properties at their full market rent?
5. Is their significant profit after the mortgage and expenses are paid?
6. Can the value of any of the properties in the portfolio be increased (with minimum expenditure)?
7. Are you happy with the lending rates you have?

If you have any underperforming properties you may want to consider selling them, assuming, of course, you have exhausted all of your possible exit strategies.

Diversification

If you have only invested in residential properties - then you may want to consider expanding your horizons with commercial properties, vacation rentals or even mixed-used properties.

Re-financing

As a rule of thumb, we reassess our portfolio every 2-5 years, releasing equity to invest in other property acquisitions. This strategy allows us to self-fund portfolio growth. In addition to that, we review the rent and renovate our properties (usually the kitchen, and bathrooms) before the remortgage is done to add the maximum value possible (this typically adds an additional margin of 3-5% when done correctly).

Insights For Long-Term Growth

Keep abreast of your local area regeneration plans (check your local council) this information can help you determine how different areas may develop in the near future (useful when buying more property stock). Compare an up-and-coming area with an already-developed area to see similar trends.

Pro Tip: Regularly review your property portfolio.

For Sellers: Understand The Market And Price Strategically   

As a seller, you must recognise the market that you are in. At the time of writing this, we are in a ‘buyers' market’, which means that the buyers are dictating the price, there are more properties for sale than buyers are willing to buy at the asking price. This means that sellers must adjust their prices accordingly, and be open to offers as flexibility can lead to a faster sale.

That said, several things can be done to stimulate your property sale. Enhance your property’s curb appeal, a fresh coat of paint and a garden tidy/landscape go a long way (can increase the viewing rate by 10-15%), a new bathroom and or kitchen and a coat of paint will also increase the sales potential of the property (can reduce the time to sell by about 25%). We have found that some buyers prefer not to have to do any decorative work after they purchase the property, meaning that the burden will be on the seller to do the work beforehand.

Pro Tip: Speak to an experienced sales consultant about solutions you may not have considered to get your property sold.

What’s Next?

Beginners: Discover your why and get started today. Investors: Assess, refine and restructure your portfolio for maximum returns. Sellers: Prepare your property for the fastest and most effective sale.

Need help or expert advice? visit www.kajoku.com