If you’re looking to turn a profit on your modest new home, Phil Spencer’s tip on how to make money on property will get you on the right track.
When you put down a deposit on a house, you’re not only buying a home but investing in your future. Play your cards right you could even make a profit. In last weekend’s issue of the Evening Standard Magazine, Phil Spencer shared his top tips on how to turn a profit with less than £30k in the bank.
Phil Spencer’s tips on how to make money from property
We’re not all looking to become the UK’s next big property mogul. However, if you’re after the biggest bang for your buck when house hunting it’s worth bearing the tips in mind. ‘To make a real profit, you need to pick a property which will rise in value faster than the general market trend,’ explains the Location, Location, Location presenter.
‘There are three ways to do this. One, buy in an ‘undervalued’ area where prices will outperform the norm. Two, make the property bigger. Three, make it better.
‘If you can score on even two of these fronts, you’ll be on your way to becoming a property mogul.’
Not sure where to start looking? Phil suggests using two parameters: ‘It’s best to look at areas where your savings can stretch to a 20 per cent deposit to make mortgage rates more favourable.’
He also suggests looking in areas close to locations where prices are on the rise and people are being priced out off. ‘Try to identify hotspots that people are starting to be priced out of and then look in the neighbouring boroughs,’ Phil suggests.
The property expert brought his first home in Battersea, in 1996, when it was still affordable and unfashionable. He managed to make a profit by turning it into two flats and renting it out, capitalising on the people being priced out of nearby Fulham and Clapham.
When house hunting, no matter what your budget, remember to think smart and invest in your future.
Who knows, you could end up the next Phil Spencer or Kirstie Allsopp.