To make a good business from property and of course be able to make a living you have to make a return or profit from your houses. Of course hopefully a healthy return will be made in the house increasing in value over the years (traditionally doubling in value every 10 years on average in most areas of the country) but you can’t rely on that. Cash flow is key and especially so when investment is put into our projects by interested parties. This investment requires a return to those investing their hard earned money of course! Business is business!
The way we maximize our returns is to provide high-end boutique shared accommodation. Most of our tenants at the stage they are in their careers couldn’t afford to live in houses of similar spec to ours on their own but when they share with like minded people they get beautiful ready made accommodation with the minimal fuss of one monthly fee (sorting all the bills especially when your moving every 6 months can be a real pain!). They also buy into a ready-made community of hopefully future friends.
From our point of you we of course get more people in a house paying us rent and so our investors are kept happy!
Many of the houses we buy were originally ¾ bedroom family homes but by cunning tricks like converting the loft and building small living space extensions or making internal rearrangements like using bathrooms as bedrooms we are able to provide more rooms with still plenty of living space. This is how in the 3rd most expensive city property market in the UK where many investors feel good returns are not possible we have defied this and created an award-winning portfolio of properties with great returns for our investors.
A great example of this is our ‘ugly duckling’ house in Brislington. We spotted this end of terrace house had a self-contained studio flat in the ground floor. Around this was a traditional 3-bedroom house. The bathroom on the first floor was huge and so was converted to a bedroom no 4. The ground floor living room made bedroom 5 and still left a great sized living area made up from the previous dining room kitchen and conservatory. In the main upstairs bedroom there was an attached ‘dressing room’, which by some internal rearrangement of stud walls was made into a further bedroom 6.
Now you may ask what happened with regards you now not having a bathroom?! Well as you may already be aware in most of our houses many of the rooms are made ensuite and 4 of the 6 rooms here were. The other 2 including the old bathroom were a bit small for internal ensuites. We therefore scratched our heads! We then realized that the second largest bedroom was still very large. We took a couple of metres squared off of this room and joined this small area to a redundant large cupboard making a beautiful exclusive use bathroom for the 2 non ensuite rooms. Sorted!
This is definitely the property we are most proud of with regards the vision needed to add value and maximize returns from an otherwise simple property. The rooms are all good size, the house was full very quickly and our tenants have been very happy. This means team strawberry are happy!
Property really can be fun. The thrill when your vision is fulfilled is very rewarding. The expression on investors and lenders faces when they see the finished projects is also very rewarding.