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...
By Sarah Jagger
Q: I am a part-time property developer. What profit margins should I work on?
A: If you invest 25 per cent and you are looking for a 100 percent return, you need a property and plan that will return 25 per cent of the value of the original investment, after costs.
This was reasonably easy to achieve a couple of years ago, as properties were expected to increase in value. 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.
In short, the making money from property investment is certainly not the easy cash ticket that it used to be, so invest your money wisely.
