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?
THEY’RE…1. Not asking why the property is on the
2. Assuming the estate agent’s assessment of the potential rental income of the home is accurate.
3. Not having a clear idea about how much the refurbishment costs are going to be.
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.
3. KNOW what your refurbishment costs are going to be.
1GETTING TO KNOW WHY THE
PROPERTY IS ON THE MARKET
JUST ASK THEM…“WHY ARE YOU
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.
Is there a problem?
Neighbours? The local area?
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.
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?
To ask the question ‘why is this property on the market?’
….is key to success in buy to let.
2THE ESTATE AGENT’S TAKE ON
THE ESTATE AGENT MIGHT LACK THE EXPERTISE
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.
WITH A BUY TO LET DEALYOU’RE 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!
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.
Predict the future of your investment…
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
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-wiring
• A new boiler
• A new carpet
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.
SO DON’T 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 is…
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.
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
1. Why is it being sold?
2. Is the estate agent right?
3. How much is it going to cost?
…and you can will get a lot more out of your property investments.