Property Developer Business Plan

Property Developer Business Plan-85
Sure, it'd be a pretty stupid thing to do – you should really have had a more ambitious goal – but you get the point.Obviously, most of us aren't in that position – and that's why we need a strategy. A handy way of looking at it is to take the amount of money you've got to invest in property, and assume that you can get a 10% annual return on that money (ROI) – which is a rough rule-of-thumb for a normal property bought with a 75% mortgage.

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Even if that plan is just “I think I can buy this widget for £1 and sell it for £1.50”, it’s still a statement of what the business will do and how it will make a profit.

But many – in fact, most – wannabe property investors start out without even the most basic of plans.

You might be surprised by how much thought is involved in answering these questions properly.

It's easy to throw around terms like “enough to fund my lifestyle” and assume that it might involve an income of £10,000 per month, but it's another matter entirely to look honestly at your ideal lifestyle and determine what a genuinely meaningful figure is.

Growth is unlikely to happen to any great extent over that time, so you need to optimise for cash in the bank right now.

On the other hand, if you have a decade before you want to have achieved your goal, Property 2 is probably the better bet.

So, if you've got £100,000, you can generate a (pre-tax) profit of £10,000 per year – or £833 per month.

That's unlikely to be enough to hit most people's goals – but then there's the factor.

That's a great start, but for most people it'll produce an uncomfortable insight: the gap between where you are and where you want to be seems impossibly large!

With the resources you've got now, how are you possibly going to reach your goal in a sensible period of time?


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