#Mid-Week Top Tip
There is a 1 degree difference between a successful property investor and an amateur.
With the constant changes in the market, I often have discussions with investors talking about “what we think happens next”
There are alot of property investors that we engage with that are building a small portfolio, of even just stepping the landlord property ladder that want rock solid rental property.
We share these #Midweek top tips to share opinions and expertise so that we can guide investors (new and old) that “dabble” in property can systemise, benefit and become professional landlords that offer good rental/investment product for the long term which will allow them to take the steps to financial freedom.
Buying in the right areas
It all comes down to the correct area for your investment. Whether you’re looking for buy-to-let or buy-to-flip you must gain knowledge of your chosen area.
A good location must relate to the end user. It would make no sense to build student accommodations 3 miles away from campus or high end luxury homes next to an industrial area. So with these thoughts in mind why would you purchase properties in bad areas? I know this may seem obvious but it is amazing how often we see this.
Fact (Analytical Data 6.12.16)– 72.22% of clients engaging with us are based around London & surrounding cities. There is value in investing in the north east and rock solid rental opportunities.
So where should you be looking?
At NGU we will only source properties in good areas where we know there is a demand and we will match these specifically to your investment strategy. On the 1st of every month I use all statics from Rightmove and collate this information to produce our postcode analysis. Please see below the top 5 postcode in the North East for Sale and Let.
Design, Design, Design
A property which has a good design scheme, space planning and interior design will maximise your profit and speed for sale or rental. Get it right and you can raise both sale and rental values up in the area.
Bringing the expertise of an interior designer and a scheme designer together as early as possible will result in you bringing a better, more valuable product to the market. Interior design isn’t about what colour to paint the walls, a good interior designer is an expert in lighting, electrical layouts and finishes.
Please follow the link below to our refurbishment website which has all the tools to make yourself the expert.
Being a motivated buyer
Motivation is one of the key drivers to success.
Within the property network we will come across people who are motivated towards moving into development at some stage on their property journey. Is this something you can resonate with? If motivation is directed in the incorrect way it can lead us to making decisions are not logical or carefully considered but fuelled with desire. I am sure we can all agree we have been overly motivated into acquiring opportunities and found ourselves in hot water!!!
Your motivation should be directed to learning and utilising the right systems and processes and working with the correct people and connections. Great opportunities are all around us and by feeding them into your pipeline and filtering through them during the appraisal process you will soon find yourself with a motivated vendor and the opportunity will be YOURS.
- We have to negotiate harder on the purchase to ensure that we can continue to maximise the returns on each investment opportunity.
- Tighten up property purchase criteria- Become extra vigilant when offering. Select properties to reflect the increase in the spend via stamp duty changes. (e.g if you have a choice of x2 properties; select the property which will require less cash outlay after completion (requires less work) to be prepared for the rental market.)
- Purchase a property in an area with a mix between owner occupied/tenanted properties. It has become a lot more important to do this; not only should you focus on the yield and return, you also need to consider that better areas will offer a greater opportunity for future rental increases and property value increases.
The Positives –
1.There will always be a demand for rental properties.
Today a fifth of households rent from private landlords, according to Respublica. This could be because of rising house prices and a lack of affordability or just because people want flexibility.
Tenant demand remained high in the last quarter of 2015, according to Kent Reliance.
2.Rents will increase
According to Rentify, 70% of UK landlords believe that rents will increase due to low supply of properties available on the rental property market.
The majority of business people recognise that buy to let is a long-term investment that requires forethought and careful assessment of risk and reward. Those who are able to adapt their strategy as circumstances demand will prevail. The demand for rental property is not going anywhere, and forward-thinking landlords will continue to be able to run profitable and successful businesses.
Message To All My Active Readers –
“Again….Keep On Keeping On! Putting A Roof Over Someones Head Will Never Go Out Of Fashion”
ANOTHER #MIDWEEK TOP TIP…..
Or call: 0191 491 0344 and ask for Mike Bell if you would like to discuss your investment strategy.
Investment property that will run itself letting you do the things that you enjoy.