When is the perfect time to buy a property? – How to become a property developer

In 2010 when I first started looking at property, I felt sick that I had not knuckled down and got myself onto the property ladder in 2002. You see, I inherited a bit of money when my dad died in 2002, it wasn’t loads but was just about enough to put a deposit down on a modest flat

At the time I could not possibly see how there was any value in tying myself into a mortgage. Instead, I decided to speculate with the money, buying and selling things that offered much more instant gratification, and in the short term could deliver a quick profit

Sadly, this short term mindset (something I cover in my property renovation & development course) was exactly that – short term!

By 2012 when I did buy my first property, prices had nearly doubled in 10 years. It was at this point I realised that 2002, was indeed an amazing time to buy property. 2012 did not look great at the time, prices were still recovering from the 2008 crash and there was no certainty that they would go up

My experience had shown me, however, that if I took a long term view then even if prices dropped in the next couple years, that over the course of say 10-15 years, it was likely that I would be much better off (just look back at historic data)

I purchased that house in 2012 for £132k (this was a good price as I had learnt how to assess property value and knew I had got a bargain). in 2014 I sold that same house for £285k (after doing extensive work to it, this left a profit of £60k). That same house is currently sold STC for over £425k. The current owner cleared around 50% profit and didn’t do any work to it – not too shabby!

Ok, so back to my original question – When is the perfect time to buy property? I’m afraid to say there is no such thing as a perfect time. Like yeah sure, with hindsight, in 2017 I would have been much better off to have bought two properties rather than one. At the time though, no one knew exactly what was going to happen. At that moment in time property prices were at the highest they had ever been, well above the 2007/08 peak. There was no certainty that they would not come crashing down like they had done previously

One of my favourite sayings is “perfection is great but doing it is better”

My friend Tim told me in 2019 that he was able to buy his first house but was waiting for the market to drop as “everyone” was saying that we were going to have a massive crash because of Brexit. In 2020 he was waiting because “everyone” was saying that we were going to have a spectacular crash due to covid. He never did end up buying anything and is still waiting for the crash. If he had of bought in 2019, he would have done extremely well

Now I am not suggesting that people rush out and buy the first place they see – far from it. Right now things are extremely uncertain, no one has ever seen or experienced a market like this. I’m constantly asking people who have way more knowledge than me, what’s happening with the market (estate agents and buying agents). No one can give me a conclusive answer

We are starting to see a decline in prices in the south west, just be mindful that you don’t end up like Tim though. Instead put your energy into learning about the market in your target area. Learn how to spot something that’s good value, learn how to add value, learn how to maximise profit when you sell. Work out a decent strategy so you have a plan B if you plan A doesn’t work out. In my experience the key to success is not just earning profit but just as important is insulating yourself against hard times should you end up in a compromised position

In 2021 property prices were the highest they had EVER been in the south west. The perfect storm had appeared, partly fuelled by the stamp duty holiday. There was an influx of cash buyers in the south west, everything I viewed went to sealed bids within the first week, most were selling substantially over guide to cash buyers – not an ideal time to buy, surely?

I purchased a property on 30 June 2021, the last day of the stamp duty holiday (this was the strongest market there has ever been) – logic would say I must have been mental, surely?

Well, no, you see, I know my target area extremely well, I study it every day, I knew the location was amazing, I knew the house was a bargain, I knew the history of the vendor and the reason they were motivated, I knew how to present myself in the best possibly manner to put myself in pole position at sealed bids. I knew I could add a lot of value relatively quickly and easily, I knew if the market did drop that I had plan B + C in place, I knew I was not going to overexpose myself and leave myself in a vulnerable position if that market did crash. (NB plan B + C would have left me earning a nice passive income until the market recovered)

Far from a gamble, this was a well educated risk. That “risk” earned me six figures of profit in return for 13 weeks physical work – not too shabby!

To be clear (and by way of a disclaimer) I’m not giving financial or investment advice here, what I am saying, is that if you are interested in property renovation and development then it’s important to educate yourself to minimise any risk

If you are interested in all things property development, then I have launched a FREE (yes you heard correct) mini course.

By the end of the course, you will be able to;

1. Understand how to minimise risk with your first property investment
2. Point out what REALLY adds value to any property renovation
3. Maximise the end sale price of your first investment property so you don’t leave any money on the table
4.  Get yourself in the perfect position to invest in your first property. 

>>> Click here to sign up and get started on the journey <<<

Cheers George B