If you make a living from house flipping or property investment, the listen up: with increasing predictions of a global downturn, it may be a good time to think about how to recession-proof your business.
Here are three ways to avoid the pitfalls and cash in on the opportunities:
• Lower property prices = good time to invest, provided you do your homework and don’t over-leverage when it comes to cashflow vs. debt
• If you’re a builder, don’t let go of good staff. There’s a current skills shortage in the UK. Retaining them means you can move quicker than the competition when new work comes along
• If you’re an investor/estate agent, aim for the mid-market property sector when there’s a more consistent customer base. Eg. starter homes, student/urban rentals will always be in demand but luxury holiday homes or city penthouses may not sell as well outside of a boom
• Look at cost-effective ways to add value in order to maximise profits and reduce costs. Clever renovations on fixer-uppers offer an excellent way to increase profits, provided you do your research and partner with a trusted and efficient contractor who sticks to the budget and the schedule.
What’s your economic prediction for 2020?