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| An alternative to Over recent decades many people have said that their home has earned more than they have, some will have undertaken improvements moving from one house to the next getting a good tax free income from property renovation. However there may also be times in our lives where we have some time available and perhaps look at property as a good way of using a restricted amount of time very profitably. This might include
For most, property investment is something that you do along side everything else, particularly in the first few years, but perhaps in some cases it is an ideal way to use your skill and time, and to become involved in a larger way. The range of opportunities may then change, depending if you are a hands on person or a planner and organizer. Running a groupWithin the section on local groups, and specialist groups like first time buyers and consortiums you will see scope that exists to put together a project or club of your own. Pulling together a number of people and managing or running it on their behalf you will appreciate can be profitable as you can set up the project or group in the way that suits you best, perhaps getting a share in the proceeds for your work, in addition to the share you have for being an investor member. What is more, using club services or a franchise you can make this both safer for your members and maximize the return. We decided that we would not offer any schemes that paid commissions for introducing members, and not take a large amount from any deals we help to set up. However this means that many people will have never heard of the club, and even fewer will have been offered the chance to take part in any group or joint project. This presents you with the ideal opportunity, and through the club services you can make this a reality, even if your knowledge or time commitments would not allow you to do it completely on your own. What other options do they have, interest rates are low, shares shaky, pension schemes less than secure, and you offer them a project as safe as houses, and with probable high returns. You may also like to consider a simpler group, that just paid a higher rate of interest using arbitrage or gave them lump sums, paid for major holidays, share of a holiday property etc using their spare equity so not costing them a penny. You could get the same benefits, every so many new members for free or a cash sum for every one who joined the group. You can of course also use this method to set up a grant giving charity or trust. If you need help with setting the bones of this up please ask. Arbitrage if you have not come across it before is profiting from the difference between interest rates, such as a mortgage at under 5%, and loans for equity at a higher rate. As long as the capital is used in a safe way, i.e. property development or rental, you can be sure that the deal will work, and no one can lose out. The amount you have to play with is the difference in the total amounts paid at the different interest rates. This is discounted when paid up front and may be added to if paid at full term like a bond. It sounds far more complicated than it is. Other pages that may be of interest is the one on groups within the Holiday Property Club (availiable soon) and the pages on strategic partnerships Just a thoughtIf you do not work for some reason, a housewife, a supported son or daughter who does not need to, then could this be for you. Do you have a wife, husband, partner, son or daughter that would benefit from some involvement and activity along these lines. Would you like to quit your job next year if not this, give up commuting..... could this be your escape route. But you may say I/they don't have the experience, its too risky, it would take too long to get going, or you just don't know where to start. The answer could well lie in the clubs franchise services, you get as involved as you like, but you get handholding, tuition as you go and are not allowed to make major mistakes, not even if you want to. What is more those that help you are rewarded only as a percentage of the profit, so you are all working together its not you working hard to support others. Well not at the start, later you will find the accountants, bank managers, tax...... all want a share of your hard work. Going it aloneYou can make money out of doing up and reselling property or in adding value to a portfolio. You will find there are some difficulties including:-
However the amounts people earn in property disguises inefficiencies, even if you take so long that your costs have got completely out of hand, it is likely the property will have gone up sufficiently to hide it. Done properly, with a lot of planning, the results of course could be spectacular. Becoming an expertEx Spert = ex is 'has been' and spert is 'drip under pressure' Joking aside, an expert that is of use will have been under pressure, gained loads of experience, and probably learn more by their and others mistakes as in any formal way. From this we are really saying that the only way to become an expert in our eyes is to do it and do it well, learning from your successes and importantly spotting where you could have done better. Not yet, but at a future time we are going to add more consultancy services with club experts, plus we want to identify those with other experience we are not able to share at the moment, including overseas property, and other ranges of funding. So as well as making yourself a few million, perhaps you may also be able to help others do the same one day. What you may have at this time is specific expertise, and feel that you could offer this to the club in some way, perhaps writing some articles for us, or helping to spread the word. Remember that you could run more than one group, and that you could also run a group with the Holiday Property Club, so perhaps getting a number of income streams. |
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