dont make these 3 mistakes when buying your next buy to let

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What are the three most common mistakes investors make when buying buy to let property? www.propertyinvestmentsuk.co.uk

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Page 1: 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

Page 2: Dont make these 3 mistakes when buying your next buy to let

THEY’RE…1. Not asking why the property is on the

market.

2. Assuming the estate agent’s assessment of the potential rental income of the home is accurate.

And…

3. Not having a clear idea about how much the refurbishment costs are going to be.

Page 3: Dont make these 3 mistakes when buying your next buy to let

BE DIFFERENT AND BE BETTER

AND MAKE SURE YOU…1. DO find out why the property is on the market.

2. DON’T take the estate agent’s word on the property’s Rental Potential.

And…

3. KNOW what your refurbishment costs are going to be.

Page 4: Dont make these 3 mistakes when buying your next buy to let

1GETTING TO KNOW WHY THE

PROPERTY IS ON THE MARKET

www.propertyinvestmentsuk.co.uk

Page 5: Dont make these 3 mistakes when buying your next buy to let

JUST ASK THEM…“WHY ARE YOU

SELLING?”

Page 6: Dont make these 3 mistakes when buying your next buy to let

Everybody knows that they’re supposed to do this… The reality is that few people actually ask the vendor or the estate agent why the property is being sold.

Page 7: Dont make these 3 mistakes when buying your next buy to let

Is there a problem?

Neighbours? The local area?

Page 8: Dont make these 3 mistakes when buying your next buy to let

If the current owners are selling up because of some concern and it’s a concern that will will become yours when you buy…

…then you need to know what that concern is all about.

Page 9: Dont make these 3 mistakes when buying your next buy to let

Yes, but…

You might not get an honest answer. It’s 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?

Page 10: Dont make these 3 mistakes when buying your next buy to let

To ask the question ‘why is this property on the market?’

….is key to success in buy to let.

www.propertyinvestmentsuk.co.uk

Page 11: Dont make these 3 mistakes when buying your next buy to let

2THE ESTATE AGENT’S TAKE ON

RENTAL POTENTIAL

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Page 12: Dont make these 3 mistakes when buying your next buy to let

THE ESTATE AGENT MIGHT LACK THE EXPERTISE

Page 13: Dont make these 3 mistakes when buying your next buy to let

Not all estate agents are set up as letting agents and they won’t 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.

Page 14: Dont make these 3 mistakes when buying your next buy to let

WITH A BUY TO LET DEALYOU’RE GOING TO BE THE ONLY

ONE THINKING LONG TERM

Page 15: Dont make these 3 mistakes when buying your next buy to let

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.

Page 16: Dont make these 3 mistakes when buying your next buy to let

DO YOUR RESEARCH!

www.propertyinvestmentsuk.co.uk

Page 17: Dont make these 3 mistakes when buying your next buy to let

1. Speak to other, local letting agents.

2. Take the opinion of the seller of the property and the estate agent with a pinch of salt.

3. Use Rightmove, Zoopla, SpareRoom to determine the rental demand in the area.

Page 18: Dont make these 3 mistakes when buying your next buy to let

Predict the future of your investment…

www.propertyinvestmentsuk.co.uk

Page 19: Dont make these 3 mistakes when buying your next buy to let

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.

Page 20: Dont make these 3 mistakes when buying your next buy to let

TALK TO AS MANY PEOPLE AS POSSIBLE

Page 21: Dont make these 3 mistakes when buying your next buy to let

You want to get as much guidance and advice as you can…

Page 22: Dont make these 3 mistakes when buying your next buy to let

… so your opinions will be as educated and rounded as

possible.

www.propertyinvestmentsuk.co.uk

Page 23: Dont make these 3 mistakes when buying your next buy to let

3KNOW YOUR REFURBISHMENT COSTS

www.propertyinvestmentsuk.co.uk

Page 24: Dont make these 3 mistakes when buying your next buy to let

The third mistake investors make when it comes to purchasing buy to let property is getting the refurbishment budget all wrong.

Page 25: Dont make these 3 mistakes when buying your next buy to let

Learn how to get your budget in order by viewing our free report…

Page 26: Dont make these 3 mistakes when buying your next buy to let

HTTP://PROPERTYINVESTMENTSUK.CO.UK/

MANAGE-PROPERTY-REFURBISHMENT-COSTS/

Page 27: Dont make these 3 mistakes when buying your next buy to let

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.

Page 28: Dont make these 3 mistakes when buying your next buy to let

THERE MAY BE…

• Electrical re-wiring

• A new boiler

• Painting/decorating

• A new carpet

Page 29: Dont make these 3 mistakes when buying your next buy to let

There may be a whole host of things to do so it’s important to budget correctly for getting the property to a rental standard that you're happy with.

Page 30: Dont make these 3 mistakes when buying your next buy to let

SO DON’T JUST GO TO VIEW A PROPERTY AND TAKE THE OWNER'S WORD FOR THE

CONDITION IT'S IN.

Page 31: Dont make these 3 mistakes when buying your next buy to let

You need to know how old the boiler is…

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Page 32: Dont make these 3 mistakes when buying your next buy to let

You need to make notes and take some pictures if you’re able to.

You need to consult with refurbishment teams with as much information as possible.

Page 33: Dont make these 3 mistakes when buying your next buy to let

ULTIMATELY YOU NEED TO HAVE A FULLY FORMED UNDERSTANDING OF WHAT THE COST OF ANY

REFURBISHMENT MAY BE…

BEFORE YOU INVEST IN A PROPERTY.

Page 34: Dont make these 3 mistakes when buying your next buy to let

So remember to ask yourself these

three questions…

Page 35: Dont make these 3 mistakes when buying your next buy to let

1. Why is it being sold?

2. Is the estate agent right?

3. How much is it going to cost?

Page 36: Dont make these 3 mistakes when buying your next buy to let

…and you can will get a lot more out of your property investments.

Page 37: Dont make these 3 mistakes when buying your next buy to let

www.propertyinvestmentsuk.co.uk