SEARCH From over 300 features and guides on this site
PROFIT FROM PROPERTY
Finance: Problems Solved, Questions Answered
Got a money question? Email the 4Homes editor and it might be answered in our next installment
Have you got mortgage problems? Are house prices worrying you? Do you need advice about debts? Do you need help financing your property development? Here's the first installment of answers to the most common questions you've been asking us...
Q: I am a part-time property developer. What profit margins should I work on? A: ‘The secret to getting a good return on any investment is to “gear up” your investment so that the return matches your deposit,’ says Katie Tucker at independent mortgage adviser www.charcol.com.
‘For example, if you invest 25 per cent and you are looking for a 100 per cent return, you need a property and plan that will return 25 per cent of the value of the original investment, after costs.'
'Two years ago this was reasonably easy to achieve as properties were expected to increase in value, and indeed they did, in the main. However, the current financial climate is such that property is expected to remain static or fall in value over the next two years, so any increase in value would have to be a direct result of the works done on it, minus the cost, and also minus the expected market depreciation, which could be around four per cent this year,’ she says.
