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UK Property Developing and buy to let investments

- make money without risk

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Getting started
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I've got the basics, what next?

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Make money
without risk!?!

Take a £80,000 flat - spend £20,000 renovating it and sell for £120,000k - make £20,000. Remember if you live in the flat as your home - then the profit becomes tax free. To make £20,000 tax free you would have to earn £30,000 in a job.

Good result, hey?

Then read on... or jump straight to Getting Started.

Best Advice

For UK Property check out JoJaffa's Property Developer Secrets - develop and let property without risk

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- well, you've only got one life after all?

Someone experienced could do this amount of work in 2 to 3 months working part time (ie evenings and weekends). In fact, someone with less experience could still achieve the same result within 4 to 6 months.

Then there's the pleasure of seeing your work take place. All day you spend sitting in an office at work - once you're home you can get creative for the very first time.

In fact there are now numerous entrepreneurs who have built their fortune by renovation houses and selling them on for a profit.

This boom is something that is very peculiar to the UK market, and it is a result of two factors:

  • A massive shortage of housing (especially in London and the south east) - but across other areas of the UK too (such as South Manchester and Edinburgh).
  • A severe lack of space and the rigorous protection of green land which requires the redevelopment of existing - but perhaps run down or dilapidated properties

That's why there is such a history of property development in the UK and why it is such a promising area for developers whether part time or full time. It is also why in some areas property prices have increased as much as 25% per annum.

The opportunity, in some north European cities is growing too - but it remains unmatched by the potential of the UK property market. In Southeast England alone, the government predicts that it needs enough new houses to create 13 medium sized cities (populations of about 250,000). Not all these new houses can come from green field sites - many if not the vast majority will have to come from the redevelopment of existing houses.

Whether you enjoy property, you like a bit of DIY, or you want to escape the day job - then this is an ideal opportunity.

However, if you already know that this is a revenue making idea and you want access to the insider secrets of the best property developers then look no further. JoJaffa has found a top London developer and written an e-book called Property Developer Secrets - how to develop and let without risk.

Check it out now, if you like what you see you can order and download it immediately.

Tell us what got you interested in property development.

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Getting started

Never forget that you are a property developer - not a property speculator. If the market prices keep increasing then that is an added bonus and very welcome. However, follow the lead of the professionals and never bank on the market increasing. Always expect prices to be the same 6 months after you've renovated the property.

So can you do it? Well on the face of it - property development is very simple. Essentially it consists of 5 basic steps:

  1. Establish your finance
  2. Find a property
  3. Buy the property
  4. Rennovate the property
  5. Sell the property

If you invest your time to learn them well, then almost anyone can be successful. Never forget that to learn from your own mistakes can be very expensive, but to learn from the mistakes of others costs you nothing but your time.

Learning from the mistakes of the professionals is the most valuable investment of your time.

Roosevelt said 'to learn from your own mistakes is smart - to learn from the mistakes of others is genius'

The biggest reason for not taking on a property is the fear that it will go wrong or that you will lose money. Yet, there is a very simply secret for ensuring that no matter what the market does - booms, crashes or levels out, you will always be able to make money.

You will have heard of so many people making money out of property, and no doubt quite a lot losing money too (back in the last property crash). In most of these cases it is a mix of good luck and good fortune that made them money, not always because they were doing it the best way. Property is such a good investment that the market will often bail out a bad investment over a number of years, but the short term risks can be substantial. That's why it is so important to reduce your risk.

The key to managing your risk is to ensure that the rate or return or yield on a property is sufficient to cover any drop in prices. Property Developer Secrets recommends you should work on a base return of 20%.

Why 20%? - because the average market price has never dropped more than 20% and because mortgage companies implictly assume that 20% is a safe margin - that's why they want a 20% deposit!

In addition, you need to know how to deal with builders and how to manage the renovation work. Of all aspects of the job, this is the one area which causes the greatest number of delays and increased costs. If you don't manage this professionally, all your hard work and effort can quickly result in no return or even a loss.

Here's a typical builder nightmare: a good friend recently paid his builder up front for development work on his house. The builder told him that he need the money for materials and that he could give him a better price. So my friend agreed and went along with the builders advice. What do you think happened? Yes, the builder started work and turned the house into a great big mess and then disappeared off onto another job. No matter what our friend did, the builder wouldn't come back to finish the job. Finally, when the builder had no more work, he came back to 'finish' the job. That means he came to complete most of the work and remove his tools. Our friend then had to pay another builder to come in and complete the job - finishing the work 1 year later!

It is crucial to know how to deal with builders so that you never get compromised. The funniest thing about this story is that our friend is a highly successful corporate lawyer. In other words he should have known better! That's the value of a really good guide to property development. If our friend had taking advice on managing his builders then he would have been able to avoid this situation, save £1,000s and get the job done on time.

Move quickly. When you buy a property to develop, you start paying finance from the moment you exchange contracts. Therefore, the ability to move quickly and complete the work is crucial to you maintaining your return.

If you'd like to know more check outProperty Developer Secrets.

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Getting more out development

If property development is so profitable, why isn't everyone doing it?

    ……the answer is because of the risk and fear of losing money.

So, if you had a method of developing property without risk, then that would be worth it's weight in gold, wouldn't it? You see the difference between the professional and the amateur is that professionals still make money in a bad market - and they make more money in a good market too.

In fact this is the difference between professional developers and amateurs - the profesionals make money even in bad markets - the first time landlords generally do not.

That is, unless they know how to manage their risk.

To find out more about how you can reduce the risk of investing in property click here.

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Kit and caboodle

Need a good book, video or more advice? JoJaffa has picked out the best for you. For each book/ video just click on the amazon link find out the price and get more information.

If you can suggest any good books about property development, let us know.

Recommended Reading

e-book : Buy to Let Secrets
by Richard Davies and Neil Lewis
How to make the very most of buying property with the sole intention of letting it out for profit. More than just a book, Buy to Let Secrets comes with spreadsheets to help your calculations to get the best return for your investment. Written and published by JoJaffa.

More info from BTL

e-book : Property Developer Secrets - make money without risk
by Richard Davies and Neil Lewis
The inside knowledge of how to develop property investments as an alternative career or extra income. Crucially, this e-book focusses on reducing the risk of property investments and offers spreadsheets tool to caluculate (and reduce) your risk. Ideal for the buy to let landlord or potential developer. (Hey, we're biased - it's written and published by JoJaffa after all - but what can you do?).

More info from PDS

e-book : 101 Tips and Tricks for Selling or Letting Your Property
by Lisa Orme
For a small amount of money and a little effort you can considerably increase the appeal of your property - and so save yourself One, Two, Five or even Ten thousands of pounds in price or rent reductions. Published by JoJaffa Ltd

More info from SLP

Books : Which? Guide to Renting and Letting
by Peter Wilde and Paul Butt
Top quality advice on how to avoid the legal minefield of renting and letting. This excellent book explains the benefits of the various tenancy agreements and explains the rights of landlord and tenant in plain English. A must have book for any prospective developer.

Amazon UKin association with...Amazon US

Books : The new London Property Guide 99/00
by Carrie Seagrave
Very popular introduction to moving, buying, selling and renting in the capital. Again, watch price values they will be increasingly out of date. An excellent introduction to areas of London that you may not yet be familiar with.

Amazon UKin association with...Amazon US

Books : Evening Standard: Where to Live in London
by Sara McConnell
Excellent introduction to the values and aspects of the different London boroughs. Very good starting point, but remember the values will be at least 9 months out of date.

Amazon UKin association with...Amazon US

Books : Which? Guide: countdown to moving house
by Which
Valuable book on the legal aspects of buying and selling property. In particular, how to manage your estate agent and solicitor.

Amazon UKin association with...Amazon US

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Spoil yourself

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If you are interested in property development, you'll probably also enjoy some or all of the following

or just do something for the adrenalin rush

Buy to Let UK for Free advice

Or if you fancy a place in the sun, how about Spanish Property Secrets - for more adventurous property developers... or French Property Secrets - How to Buy, Sell and Let great property in France for investment and living .... or ... French Property UK - everything you need to know about buying property in France

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