In the UK, property investment is seen as the preferred route to wealth by most people. Even those who aren’t investing (home buyers) gauge their wealth by how much their house has increased in value. It’s the largest expenditure majorities of people make, and offers many benefits to investors. Considering this, becoming a property investor is a fairly lucrative business option.
Siddharth Mahajan, Tulip Real Estate Owner, found success at a rather young age owing to his astuteness and drive to get to the top. He attributes his swift growth and development to a number of things, he lists them here for aspiring property developers.
Once you’re determined that this is the place, the profession you want to be in, you need to start building on the right specialist knowledge. You need to have not just knowledge of a strategy, but knowledge of your area.
- What streets do you want to invest in?
- What types of property are available in your area?
- What type of tenant demands in your area?
- Where are the best strategies in your area?
You need to know about tax and systems. You need to know the people that are the right people to talk to about specific things. You need to have knowledge of the best builders, best letting agents, best estate agents, etc.
Choose the right property location to invest in
Siddharth Mahajan, Tulip Real Estate Owner suggests, “A property’s location is critical, but you don’t have to buy in the most expensive or the cheapest part of town. Look for an area that’s up and coming, as property here will be cheaper with the potential to deliver the greatest return on your investment over a longer period.”
“Look for an area with signs of growth and gentrification. Research local authorities and look for news about improved transport links, new shops and local investment. Locations on quiet roads, near public transport, good schools and green areas are ideal but avoid busy, main roads.” adds Siddharth Mahajan, Tulip Real Estate Owner.
Develop properties that are suitable for both sale and rental
Even though your aim may be to sell your development, it is essential that when you are evaluating the feasibility of a development, make sure that you take into account what rental is achievable and the net return. Therefore, look for development properties in the right areas that will not only sell but also are easy to rent. When interest rates increase there will be fewer buyers around, but there will be more people looking for rental properties.
Don’t purchase the first property you see
According to Siddharth Mahajan, Tulip, the more you look for properties, the better you know the market and the better your judgment becomes. One should always feel comfortable after signing an offer. It would help if you did not think that you will be missing out or the boom in the property cycle will be over soon. Well-located properties purchased at the right price will always hold their value. Therefore, do your homework and take your time to find the right property that suits not only your pocket but also your development plans.
Get a good team that you can trust
Property development is a complex subject. There are no shortcuts and developers should seek the advice of a professional team that they can trust. To save money, some developers have not sought such professional guidance and have subsequently made bad decisions, which in turn have cost them more eventually.
Experienced developers know that it is impossible for them to do all things themselves and to ensure that their project is successful; they would employ the best professionals to get the best results. Your team is likely to be made up of a property lawyer, accountant, finance broker, architect, real estate agent and a development/project manager to oversee the whole process.
Strive for quality in your developments
Don’t develop a property with a focus only on numbers. That is, do not develop to maximize the absolute highest profit. In my career, I have encountered developer clients that want to squeeze as many residential units on a property as possible without any consideration for quality. The extra unit or two they have squeezed do not sell which is where their profit is sitting.
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