Apartment Business Plan

So, if you've got £100,000, you can generate a (pre-tax) profit of £10,000 per year – or £833 per month.

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Think of it like this: if you had £10m in the bank and your goal was to make an income of £5,000 per month within a year, you wouldn't need any strategy at all.Growth is unlikely to happen to any great extent over that time, so you need to optimise for cash in the bank right now.On the other hand, if you have a decade before you want to have achieved your goal, Property 2 is probably the better bet.So, by this point in the plan you need to: If you need help with this goal-setting process, I co-own Property Hub Invest which offers free strategy meetings.It's often easier to work this stuff out in conversation with someone who knows their stuff, rather than doing it all in your own head.Sure, it'd be a pretty stupid thing to do – you should really have had a more ambitious goal – but you get the point.Obviously, most of us aren't in that position – and that's why we need a strategy. A handy way of looking at it is to take the amount of money you've got to invest in property, and assume that you can get a 10% annual return on that money (ROI) – which is a rough rule-of-thumb for a normal property bought with a 75% mortgage.If you save up the rental income for 10 years, you'll be able to buy another batch of properties just like the first – so you'll now have income of £1,666 per month.If you're happy with that, then you've already got your strategy: buy properties that will give you a 10% ROI, then wait!To give a cheesy analogy, you can't plan a route unless you know where you're starting from.Working out your starting point is the easiest part, because it involves information that's either known or easily knowable to you.

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