Dont make these 3 mistakes when buying your next buy to let
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Transcript of Dont make these 3 mistakes when buying your next buy to let
What are the three most common mistakes investors make when buying buy to let property?www.propertyinvestmentsuk.co.uk
THEYRENot asking why the property is on the market.Assuming the estate agents assessment of the potential rental income of the home is accurate. AndNot having a clear idea about how much the refurbishment costs are going to be.
Be Different and Be BetterAnd Make Sure You
DO find out why the property is on the market.DONT take the estate agents word on the propertys Rental Potential. And KNOW what your refurbishment costs are going to be.
1GETTING TO KNOW WHY THE PROPERTY IS ON THE MARKET
JUST ASK ThEMWHY ARE YOU SELLING?
Everybody knows that theyre supposed to do this The reality is that few people actually ask the vendor or the estate agent why the property is being sold.
Is there a problem?Neighbours? The local area?
If the current owners are selling up because of some concern and its a concern that will will become yours when you buy then you need to know what that concern is all about.
Yes, butYou might not get an honest answer. Its ok. How did they answer? Did asking the question give you a sense that there were more questions to ask? More people to talk to?
To ask the question why is this property on the market?
.is key to success in buy to let.
2THE ESTATE AGENTS TAKE ON RENTAL POTENTIAL
The estate agent MIGHT LACK THE EXPERTISE
Not all estate agents are set up as letting agents and they wont always have the background to be able to assess how successful a particular area may be on rentals or how easily a particular property might be to let out.
with a buy to let dealYOURE going to be THE ONLY ONE THINKING LONG TERM
timeframe You might have the property for 6 months, 1 year. 10, 20, 30 years (building a portfolio). The estate agent needs to make a sale as soon as possible and will only be thinking in terms of what the rental value is now.
Do your research!
Speak to other, local letting agents. Take the opinion of the seller of the property and the estate agent with a pinch of salt.Use Rightmove, Zoopla, SpareRoom to determine the rental demand in the area.
Predict the future of your investment www.propertyinvestmentsuk.co.uk
The rental potential of a property is something you must work out for yourself in accordance with your investment strategy. You can not rely on others who, ultimately, do not share your goals.
Talk to as many people as possible
You want to get as much guidance and advice as you can
so your opinions will be as educated and rounded as possible.
3KNOW YOUR REFURBISHMENT COSTS
The third mistake investors make when it comes to purchasing buy to let property is getting the refurbishment budget all wrong.
Learn how to get your budget in order by viewing our free report
You won't be able to calculate your return on investment if you don't know what it is going to cost to get the property to the level you require.
There May be Electrical re-wiringA new boilerPainting/decoratingA new carpet
There may be a whole host of things to do so its important to budget correctly for getting the property to a rental standard that you're happy with.
So dont just go to view a property and take the owner's word for the condition it's in.
You need to know how old the boiler iswww.propertyinvestmentsuk.co.uk
You need to make notes and take some pictures if youre able to. You need to consult with refurbishment teams with as much information as possible.
Ultimately you need to have a fully formed understanding of what the cost of any refurbishment may be before you invest in a property.
So remember to ask yourself these three questions
Why is it being sold?Is the estate agent right?How much is it going to cost?
and you can will get a lot more out of your property investments.