• Arda

Forget about property for a second and start thinking from the end!

Updated: Oct 19, 2021

Everyone is excited about starting their property investment and wants to get into the property ladder as quick as a second! So am I! But hold on!

You have to start understand that the best strategies work by understanding the CUSTOMER first. You may be right now thinking, let's get out there and find good below market value properties and start investing... What would be the last step of your investment be in that case? Let's say it is the classic buy-to-let and your last step of investment plan would be "a tenant starting to live in your home" and you started enjoying your cash-flows however you just missed the most important (may not be the most exciting) aspect, it is "THE CUSTOMER" - the demand!

Before you start thinking of what house you want to get, or how nice the colour of the house is, think of your investment as a business and in every business there is a supply and a "demand". Considering your investment strategy is a buy to let, your demand is your "tenant".

Is it a 3 bed family home you are after, then where do the families live the most? Which districts? Have you thought about checking the street at 11am on a Monday and a 8pm in the evening the same day to see how full the street gets with everyone parking their car after work and enjoying their Monday evening back at home? What cars do people drive in that street? Big station wagon family cars? A primary school nearby? See? now you are starting to understand and think like a strategic investor!

You determined and confident about the area and you understand why families live there and there is still a demand, now you can start thinking about how much local investments, regeneration works there are planned in the area? New schools being built? or sadly, a new night club opening up on the street where there are family homes? Once you understand the future regeneration works, you can start predicting the capital appreciation potentials...

Are you confident the house prices in the district appreciate at a certain steady rate rather than being in dip for years? Because whether your goal is cash-flow or capital appreciation, it is important to understand the property market! Now that you found your house, what is the asking price? Never estimate that the asking price is what the house value is! Negotiate and look nearby sold house prices to understand its true value!

Finally you found your unique house in a nice appreciating family district and worked out that there is a demand. But have you thought about who will manage it? Do you have the time to take care when a boiler breaks down in a cold December night? Are you aware of maintenance costs? or would your rather let a letting agent manage it all for you for a fee?

As you may have noticed, we started with the most overwhelming perhaps you call it boring facts... your financial goal numbers, demand of area, type of customers, regenerations works and we ended up with "property" as the last thing to look into! Most successful strategies come with a solid plan. Real Estate is a numbers work. Why don't you start to determine your financial goals and understand your "Whys & Whats" and then book your first 1 to 1 session with us and we will guide with the whole process from finding you the best properties after extensive market analysis that would fit your strategy and we will offer you an excellent hands-off service! Let's succeed together!