We are delighted to bring you another property investment success story. This is about two brothers from the West Midlands, Phil and Mark Stewardson who were working humdrum jobs and gave them up to become buy to let millionaires. They applied a different philosophy according to different market conditions.
If the market is weak then they buy a property, renovate it and then sell it for a profit as opposed to keeping these properties. When house prices are on the rise they accumulate properties. Their thinking is that if the prices are going down then holding on to properties is pointless as they will lose their money. If the market is falling they look for properties that have hidden value that they can unlock.
This could be a low cost renovation that will significantly increase the value or the addition of an extension or some other major work. They will then aim to sell the property fast. They always try to buy houses with cash, unless they want to hold on to a property. If they want to own a house for more than 6 months then they will arrange a mortgage.
If the market prices are rising their strategy is to buy, hold and let. They look for a 10% return on their investment with buy to lets. The reason this is so high is to cover costs and times when the property is not being rented. Their tenant market is usually young professionals such as doctors, nurses, teachers, middle managers and so on. They are strong believers in looking after their tenants.
These guys started from nothing and are now multi millionaires. They were determined to succeed and were prepared to take risks to achieve their financial goals. It was a lot of hard work for them and they had some tough times. You can benefit from property investment without the hard work and risk taking. Find out more about partnering with us by contacting us here.
In this video Phil Stewardson shares his views about property investment.