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4 Tips on How To Build a Buy-to-Let Property Portfolio

For some people, building up a buy-to-let property portfolio is their way of getting on the fast-track to success. But don’t be under any illusions that it is going to be easy. You will have to invest a great deal of time and money in making a success of things if you are planning to be an active investor.construction-process

Like any other kind of entrepreneurial enterprise, there will be a high degree of risk involved, but the rewards are there to be reaped if you manage to make a success of things. With this firmly in mind, let’s take a look at the most efficient ways of growing your property portfolio.

Start with a Single Good Investment

Getting off the ground is probably the most challenging part of building a property empire, so you need to make sure that your initial investment is a good one. The best advice that you can follow is to start small.

Even if you have the funds to invest in a more expensive property, you will learn a lot of lessons from your first place, so it makes sense that you don’t break the bank. Working with a firm like reo properties can set you off down the right path. It is a good idea to start local so you are able to easily reach your property whenever you choose.

Buy at the Right Time and Price

On a daily basis, residential properties are being sold for less than their market value. You need to make sure that your investment fits in nicely with this criteria. Be bold with you offers. As the old saying goes, if you don’t ask, you don’t get.

Try to choose the right time of year to make your investment as the property market goes through cycles. The boom times tend to be in a couple of months leading up to summer and those leading up to Christmas. Avoid these times and you will put yourself in a better position to strike a good deal.

Make Sure to Do Plenty of Research

It may seem crazy, but there are still plenty of first-time investors who head along to an auction, get a sudden rush of blood to the head and buy a property without having done adequate research. Though some will have success, your chances are much smaller if you don’t know what you are getting yourself into.

Think about how much work will need to do to the property and calculate what sort of investment you will need to put in. Analyze the area and who are likely to be your renters. You will put yourself in a much better position if you have done the appropriate research.

Treat Your Tenants Right

You need to make sure your tenants are happy and their experience of renting a property from you is a positive one. Deal with their concerns and any issues that may arise around the property as quickly as possible. Develop this good reputation at the rewards are there to be reaped.

Pass Go With Your Property Investments

 

Do you have what it takes to survive in the property investment industry? You might think you do and we’re sure you have at least one friend who has told you how easy it is but don’t be fooled. Investing in property is always a risky venture.

real estateHowever, the rewards might just make it a risk worth taking. It all depends whether you know how to thrive investing in property.

If you’re going to win this game, there are a few things you need to do.

 

Careful With Costs

One of the biggest mistakes that you can make when investing in property is to not take all the costs into consideration. A lot of people forget about some of the key costs and focus on the main ones instead. For instance, you might be aware that you’ll need at least five percent of the overall property value for the deposit.

However, you could be investing in an apartment. If that’s the case, you should consider whether you’ll be charged money per month by the owner of the building on top of the mortgage repayments.

Getting The Right Price

How much are you paying for the property? You need to be cautious of overspending on a property that isn’t worth the money. Make sure you get a full survey of a building before you buy and look at any issues that might need fixing. If they are going to be too expensive, you should back away from the investment. If you don’t, you could end up in a position where you’ve actually bought the property at a loss.

Choosing The Right Location

Where should you buy the property? If you’re going to be responsible for maintenance, you should be purchasing close to where you live. However, if you’re willing to hand the job of maintenance off to a company that you trust, you can buy anywhere.

If that’s the case, you should be looking for real estate in a stunning location. This will push the value of the property sky high and ensure that selling or letting, you make a lot of money.

Partner Up

Due to the high cost of property investments, it might be worth considering avoiding going solo. Instead, you can work with a partner to sell the property. Or perhaps buy a luxury real estate investment with a group of people. You will need to choose your team carefully, but by doing this, you can limit the costs and the potential risks while still ensuring massive profits are the end outcome.

Patience Is A Virtue

Finally, at some point during your property investment, you will feel like things aren’t going your way. Maybe, the property isn’t selling at the price you’ve chosen. Or perhaps, you’re not getting enough interest from renters.

The trick here is to be patient. Eventually, someone will come along who is interested in your property at the right price. Remember once you begin this investment, there’s no fast way to jump back out of it. You must commit and prepare yourself for the bumps on the road to success.

 

 

Selling Your Home? 5 Tips to Ensure You Get The Most Money Possible

houseIf you’ve invested in real estate with the intention of selling it on for a profit, then there’s a crucial detail you’ll need to factor into the process: that you need to actually sell your home for it to be a good investment.

And it’s not just a matter of getting the house off your hands; you want to sell it for the highest amount of money you can. If you’re preparing to sell a house, take a read of our five tips below.

Think Hard About the Asking Price

There’s a misconception that an asking price in your area is the be all and end all. It’s not. Just because a home on your street was worth one amount, it doesn’t mean you have to take that as a measure for what you should ask for your home.

House prices depend on a whole host of factors, such as location, the condition of the house, and even things like which direction the garden faces. All these combine to create a unique price. In any case, a house is only worth what someone is willing to pay – if you feel confident in your high asking price, stick with it.

Make the Front Sparkle

First impressions really do count when it comes to viewing homes. You can’t control the neighborhood, but you can control the front of your home. If the grass is messy and there are kid’s toys scattered everywhere, your home will not be making a good first impression. Take the time to ensure that the front of your home is spotless and you’ll be off to a good start.

Get Rid of Clutter

If someone is thinking about buying your home, they need to be able to see themselves living in it. That’ll be hard to do if they need to first mentally ignore all the clutter you have lying around your home. Each room should have as few material items as possible. Let them see the potential of the room, not your own strewn about sports equipment and papers.

The Listing

Don’t underestimate how important real estate listings are to determining whether a house sells or not. If your property description contains spelling and grammatical errors, your listing will look unprofessional. You’ll also need to ensure that the photographs of your property are of a professional standard.

If you need some a guide on what not to do, take a look at these terrible real estate photographs.  A video of your home and virtual tour are also great marketing tools.

When They’re There

When there is interest shown from potential buyers, you’ll want to make sure that the viewing goes as smooth as possible. And that means, essentially, getting things out of the way.

If you have children, pack them off to their grandparents for the afternoon, and send the dog with them too; nothing good can come from having a dog there, only bad! If you’re doing the viewing yourself, then show them around and then allow them to wander around by themselves. If they’re going to buy, they need to feel comfortable in the home.

 

A Beginner’s Guide to Buying a Home

There are not many things in life as happy or exciting as buying your first house. It is a big step and means that you are finally on the property ladder. Spending your money on a mortgage each month can be much more worthwhile for many people than paying rent (which is essentially just paying someone else’s mortgage for them). property

So it is a good step to take for many people. It can mean some more financial freedom and knowing that you now have an asset against your name. In spite of all of this, it can still be a pretty daunting experience. To start with, there is a lot of information to process; where do you start?

The key to starting the journey to homeownership is by prioritizing. You shouldn’t try to take on too much all at once. You also shouldn’t try to take too much on. Ask for help from those people around you if you need it. Certain things in the process will need more of your attention than other things.

But with some time and organization, everything will sort itself out. So with all of this in mind, here are some of the steps to take and how to approach getting your very first home. I hope that it proves helpful to you as you take this big life step.

Shop Around For Mortgages

There are so many different lenders and mortgages that you can take out. But when you consider a housing loan there are a few factors to consider. First of all, you need to check the fine print of the mortgage.

Will there be an introductory rate to start with and then after a certain amount of time will the rate of repayments go up? Will the interest rate change? You need to know what you will end up paying out specifically so that you can budget accordingly. You don’t want to sign up for something and realize there is nothing you can do about it until things are too late.

Don’t Do It Alone

If you have a partner that you are buying a home with, then it can help when you have any concerns. If you are buying a home solo, then don’t try to presume that you can do it all yourself. Hopefully, family and friends will be able to be there to guide you through the process and help you to deal with the paperwork or offer advice when it comes to the legal side of buying a house.

They can always be called in to help on moving day too, right? It is also of paramount importance to be working with an estate agent that you are happy with. They will be paid quite handsomely for doing their job, so you need to make sure that you use them accordingly.

Call or email them with any concerns or queries and ask for their advice. They can advise on specific areas if you are moving somewhere new, or if you are looking to buy, then can help suggest the right conveyancing person to speak to. Buying a home is a big investment, so you don’t want to feel unsure of anything, or like you have unanswered questions.

Location, Location, Location

There are several factors to take into consideration when buying a home. One of the most important ones is the location of the property. Even though you won’t be thinking of selling it right away (you’ve only just moved in). You need think about it’s resale ability.

As a home is an investment, and you never know where life might take you, the chances of being in that home until you’re retired are going to be quite slim. So you want to get a good return on that investment, right? So although you will be looking at the size of property that you want, and it’s access to certain places or things, you need to take into account where it is located.

Look at schools in the area, access to public transport, and other factors that can be a selling factor for other people. Looking at the neighboring roads is a good idea too. You want to end up with a home on an amazing street, rather than an amazing home on a bad street if that makes sense?

So do take your time when choosing. It can be easy to get caught up with making an offer as you think someone else will snap it up. But if it goes, then it wasn’t for you. Take your time!

Do Your Research

There will be a lot of research to do when you’re buying your first home. One of them is as above; location. But you also need to look into the area and the properties around it. Have any of them sold recently? If so, how much did they go for? When you look into this kind of thing, it can make a big difference to what kind of offer that you will make. You don’t want to make an offer over the amount if you don’t have to. You want to make it competitive, but also reasonable for you and what you can afford.

You should also do some research into the home itself. There is nothing wrong with asking how old things are and what work it has had done on it. You don’t want it to have any structural damage or problems like damp.

So make as many appointments to view the house as you would need, as well as asking a lot of questions. You also need to take time with a survey or conveyancing solicitor. It can make a big difference to the whole process and helps to ensure you are making a good investment.

Plan a Timeline

When it comes to moving house, it does need some military precision organizing (or at least it can feel like that). So plan out a timeline. At what point will you start looking to get approved for mortgages, as well as when you will look to move? Having it all planned out can help the process run much more smoothly. So it is worth taking the time to do it.

Research Renovation Costs

It is rare that we find our dream home just as it is. Quite often we will need to make some changes, even if it is just to the color of the walls. But that does all need to be factored into the moving costs.

How much will a whole kitchen cost to renovate, for example? If you don’t have any savings of your own to do it, then will you add it into the home loan that you’ll be asking for? If so, you need to be quite specific. So if you find a house with massive potential, but that needs to be renovated, then be specific with the costs of it.

Then when you approach a bank or mortgage lender, you can present to them what you aim to do with the house. Quite often these kinds of thing can add value  so it can end up being a good investment for all involved.

Are there any other things that you think are important to consider when buying your first house? I should also add that it is important to see buying a home as a business decision. Take all emotion out of it, and you’ll make much wiser decisions, which will help you to make a better investment in your home.

The Tricks Of Real Estate

propertyReal estate is a tricky business. Yet there are Certain tricks that can make it easier for yourself as an investor. New investors can often struggle, and there are certain mistakes that you simply would not want to make because they cost not only money but time too which is often vital to the good real estate investor.

These tips can help you find your footing, and make the most of your chosen profession.

Real Estate Agents

In the first instance, you want to be able to benefit from the knowledge and expertise of others. You may go far and wide in your pursuance of a good real estate and in these case, you would be better off speaking to local real estate agents. They know the area and you can get all kinds of local knowledge from them. They know what sells and what doesn’t, what works, what increases the value of a home. You may think you know this but the fact of the

They know what sells and what doesn’t, what works, what increases the value of a home. You may think you know this but the fact of the matter is that this is different in each town or city. If you wanted to invest away from home then you should check in with one of the bigger estate agencies. You may even find a great investment with them.

Tradesmen

Keeping with the building of relationships, you need to get in with tradesmen. If you like investing in the same city, which is often the valid route to success, then you will soon grow to know many tradesmen. It is these who pile the value on the home you have bought.

You need to use them for lots of things, yet ensure you pay lower amounts so it doesn’t eat into your profits by too much. One of the ways to make this work is by going into a partnership with the tradesmen.

Also, once you have built your list of tradesmen and keep using the same ones all the time you could potentially ask for better prices or get more work thrown in for similar prices. The fact you offer guaranteed work will go a far way. Link with tradesmen and your job will be a lot easier.

Market Research

The best trick is research. You need to research every aspect of your investment because if you don’t you will find yourself open to loss of investment or a low return. Buying a house in a particular street? Raid all the information you can and find out what similar houses in the area are selling for, particularly ones which have been taken up by investors.

You can see from this how much you could get in terms of profit. Check building schemes. Is there something being built nearby which will affect the value of your home? These are all things you need to consider. Check the local amenities too. The more you know the more of an informed decision you can make.

Five Mistakes That Every Novice Property Developer Should Avoid

 

novice developerGetting started in the world of property development can be a daunting task. There are courses to take and lessons to learn, but much of what you’ll learn from property development comes from a mix of common sense, intuition, and experience. The property market is a volatile one that can change at any moment, so it’s important that you notice the signs of failure and when to pull out before it’s too late.

In order to give you a hand, here are five mistakes that almost every amateur property developers makes, and should try their best to avoid.

  1. Quantity over quality

This is a rather simple and straightforward tip. Don’t bite off more than you can chew, don’t assume that you’re going to be able to handle more than a single property sale at a time with your lack of experience.

Not only does it take a lot of coordination and time management skills to deal with multiple clients fighting over different houses, it also eats into your mental state and can easily stress you out. As a new property developer, you need to focus on making a quality sale in order to spread your name and perfect your sales skills.

  1. Replace terrible builders

If you’re renovating a property or building on new land, then don’t allow terrible builders to ruin your chances of making a sale. Builders are no strangers to charging you more money for a simple build or trying to dazzle you with their lingo.

Make sure you’re looking at online resources such as this brick guide to learn all about construction. A bit of time investment into the subject of construction can go a long way and help you identify builders who are legitimate and those who are trying to con you.

  1. Over Exaggerating

There are many things you can over exaggerate when it comes to the property market. Perhaps you write a brief article about your new development projects and overestimate the end results. Perhaps you install appliances and complicated decor arrangements in a house that look out of place.

Maybe you’re focusing too much on luxury when it’s an apartment that should be designed for low-income families. Whatever you do, set limits to your development projects and always design for the area your property is in, don’t go overboard trying to stand out.

  1. Stay professional

Don’t get too cute with your clients. When you’re showing them a property or speaking with them over the phone, don’t interject with personal comments. If your client makes a comment about something they dislike about the property, don’t say anything that could relate to your opinion.

Don’t tell them you agree, don’t tell them you disagree and don’t give them reasons for it. Stay professional, keep your distance from your client and answer their questions, not their opinions.

  1. Developing in the wrong area

If you’re going to invest a lot of money into the real estate market, then make sure your area of focus is a profitable one with a lot of traffic.

If you build in an area that is niche or doesn’t get many buyers and sellers, then you’re wasting your time and you’re better off investing your money into a new development project and renovating existing houses in popular areas.

How Tech Has Changed The Property Game

Technology has transformed nearly every aspect of our modern lives. It is strange to think, but it is now commonplace to have what is effectively a computer in your pocket. You can not only make calls, but also listen to just about any song ever recorded, speak to people on the other side of the planet thanks to social media, and photograph just about anything you want. graphic design

In fact, modern smartphones have more processing power than NASA used to send two men to the moon in 1969. They are taken for granted now, and it is in fact rather passed not to have one. As an entrepreneur, you will almost certainly own one. They are indispensable in the modern business environment. Not only do you need to keep in touch with your business contacts and your clients, you always need to be online so you can keep track of everything else that allows you to excel at what you do.

Smartphones aside though, technology has transformed all sorts of businesses, but perhaps the most interesting thing is how it has changed property investment. If you have a property portfolio, or you intend to create one, you should know that to be successful you should carefully assess your finances before deciding to invest.

The next step is meticulous research into prospective properties, including their structural soundness as well as their potential to attract wealthy, professional tenants who will pay the rent on time. In terms of keeping track of clients and making sure all of the paperwork is taken care of, the best option is professional property management services. They will ensure that your property is active and you are making money every month.

That is just the foundations of property investment though. In the modern age, it has developed a lot. The internet has opened up so many different possibilities for the property market that it is an exciting time to become involved in it. For example, online property listings have now all but taken over from the more traditional options of advertising in local newspapers or in shop windows.

The role that estate agents play has somewhat been reduced because they are no longer the only way in which someone can find the property that is perfect for them. It allows you to more directly reach the clients that you want to attract.

Another innovation is the use of virtual reality technology to allow prospective buyers to view a house without actually visiting it. In what is now a more connected world than ever, the people to whom you may be selling your properties will not all be moving within their country but may be wishing to invest from the other side of the world. The use of this technology has made it easier to market properties and therefore a better industry in which to invest.

Although it may not yet be a widely commercially available option, a construction firm in China has started building small, affordable houses using a 3D printer. This would have been unthinkable just a few decades ago. The future of property market is, therefore, an exciting business opportunity.