Why do you want to become a property investor?

Are you looking to become a property investor? Are you viewing it as a hobby, a second source of income, or as your own business?

If you are choosing the route to investing in property as a business venture then, knowledge is truly the key to success. I am sure you have heard this many many times but the key to successful property investment is choosing the correct properties. The following will give you some great advice for getting started. If you are still unsure about it all but have a desire to invest in property pop along to one of our free and informative property investment workshops.

Do extensive research before investing for real. View a large range of properties, we would suggest anything up to 100 in the location you’re considering, prior to viewing any potential buy to let properties produce a essential and desirable check list. You should take into account things like potential repair costs, rental revenue potential, and desirability of location, opportunity to purchase more in the area. This will help you measure your data effectively and figure out which properties are the best.

You need to carry out extensive research to become educated in property investment prior to investing. In the investing in property world knowledge is king and the greater the knowledge the more likely your business will increase its property investment portfolio. Attend property expo’s, attend workshops, visit property network groups. Down doad free ebooks, be aware they will then try to sell you something else. All this activity will boost your knowledge of the subject.

You may find that after all this research you still  have a desire to become a property investor but do not have the time to ensure you are carry out all that is required to meet your business strategy. Fear not you can still become a property investor by using companies like Fossey Taylor who provide a management service to ensure you are successful.

When you are carrying out your property investment research remember there are many more costs that are additional to the purchase cost of your property. You have closing costs, legal fees, staging costs, and more that may affect the bottom line. When coming up with your profit margins, think about every possible cost then include them in the line item list.

Location is a vitally important part of investing. Many of the other factors, such as property condition can be changed. Properties in areas that depreciate rapidly usually result in bad investments. Know what you are doing and make sure to research the areas around where you live.

Rising property are not always a bad thing, as most people who invest in buy to let properties are looking at a long term strategy.  Through choosing the right property and purchasing it at below market value you are ensuring that you are endeavouring to future proof your investment, should there be a slump in house prices.

One of the biggest mistakes of a first time investor is not to listen during a negotiation and instead conduct most of the talking. You will be surprised at how often someone will do all the work for you just by letting them speak. Actively listening will help to ensure that you get the greatest deal possible.

With social media so prevalent it is easy to join an online investor group or follow forums and blogs from highly successful investors in real estate. This will provide you with various view points and their experiences, turning this into helpful information will allow you to start using in your own investment strategy. An online investment group allows you to speak to other investors.

Always choose a property that has the potential to increase in value. An up and coming area is the easiest way to ensure the potential if no refurbishment is required. Again we have stated this many times remember that good location and a high demand area is a plus when it comes to excellent resale value. Consider the long term price and determine how much it’s expected to increase, thereby improving the outlook on investment.

If you are thinking about purchasing buy to let properties, consider outsourcing the finding of tenants to a lettings agent, they will be far more skilled at screening tenants. You might lose money if you do not do this.

Never leverage yourself out completely when trying to get that next property deal underway. Always make sure you have reserve cash in case something happens that you do not expect. If you do not do this, eventually you will suffer huge losses. This is all part of the Fossey Taylor service we will advise you of the level of leverage you are achieving.

Property investment has its ups and downs as with all industries. Don’t let the low points discourage you. Just keep at it and things will soon pay off. You will find success if you don’t give up. One of the many benefits of using companies like Fossey Taylor is that they can help minimise the low points or through good planning ensure they do not happen.

Be objective when buying your investment properties, and keep your emotions at bay when negotiating. You are buying this as an investment; it is not your home. Don’t make emotional decisions or you’ll always end up paying too much.

You should realize that it’s going to take time for your investments to pay off. You want to be sure to have some money in the bank. It really does help if you have steady income coming in at this time. You never know when expenses will come about. Things could go south quickly, if your income source is not solid.

We have over the last few weeks suggested that family crowd funding could be the way to start your journey in investing in property. This was based on our knowledge and experience of sourcing over 400 buy to let property investments for our clients.

Now recent research has confirmed that over 77% of people are considering a property purchase with friends, family or partner.

Read the full article here.

 

Recent surveys and research are reporting that the average house prices across the United Kingdom are exceed 2007 levels, although some industry analysts are suggesting that the continued growth may slow with new mortgage rules adding a dampener.

House prices rose by 1% in June, and are now 11.8% higher on an annual basis but the latest house price sentiment index implies that there is an easing of expectations for future price growth.

The value of an average home has risen by £20,000 or 11.8% over the last year. Data from Nationwide shows that the value of an average property in the UK is now £188,903, above the pre-crisis peak levels seen in 2007.

However the large regional variations must be taken in to account when considering the pace of growth, with London prices up 26% over the year while property in Yorkshire and Humberside has risen in value by 7% over the same period, Knight Frank says in its latest UK residential update report.

The deputy governor of the Bank of England, has stated that this rapid rise is one of the biggest threats to the UK economy. He said that prices rising faster than earnings led to the risk of rising consumer debt which the bank sees as a threat to stability.

Read the full property market article

 

Building a property portfolio as a family

The current property prices means first time buyers continue to struggle to save their deposit to climb onto the property ladder. Some are lucky enough that they have access to the “Bank of Mum and Dad”. As the interest rate on savings is not favourable at present some family members are considering lending to their nieces/nephews or grandchildren.

Is this fraught with difficulties? Not necessarily as long as the details are clearly agreed and drawn up prior to any funds are passed over. If the deal isn’t clearly labelled for what it is Christmas and Family parties could get a little awkward.

The family members borrowing the money sign up for a Two or Three year fixed mortgage with the aim to remortgage once that fixed term is over and from the remortgage they release the deposit raised back to the family members plus a bit of interest. Is this crowd funding at its best as it keeps it in the family? Loads to think about before you sign up, especially having various Aunts and Uncles having a percentage in your home, but it’s your family what could possibly go wrong?

As a family you may not have any relatives struggling to achieve a footing on the property ladder, yet you have some funds you could invest in property. Would family crowd funding be a solution to achieving a better rate of return for your funds? You could adopt a similar principle as described earlier but instead of paying back the initial funds these are reinvested into another investment property. Again paperwork would need to be drawn up to ensure no family gatherings are awkward. As a family you could very easily build a great property portfolio.

It is no surprise that several financial and property experts are commenting that ignoring your pension is no way to save for retirement. Having read several articles we are also not surprised to learn that women tend to expect only half the income during their retirement years as men. Despite this conditioning from society, such perceptions do not have to become reality. There are a number of proven investment techniques that both men and woman can put into practice now that will afford them the income they desire in retirement.

Many experts are stating property is superior investments compared to savings due to it not relying on the whims of bankers and their willingness to adjust savings interest rates. It only depends on your investment acumen and your willingness to be smart and put in the effort to be a successful property owner. With the guidance of how to buy the right properties and the support to manage a portfolio, there is virtually no limit to the amount of money you can make in rental property.

By next year, the rules regulating pensions in the UK will come into effect. You will be able to draw down your pension and use that money for better investments. We urge you to do so, whether you are male or female, by putting your money into rental property. Fossey Taylor is here to help you every step of the way. We will provide you with all the advice you need as well as access to very attractive properties in the Nottingham area and beyond.

investing in a property portfolio with Fossey Taylor

At Fossey Taylor, our strategy is based on locating off-market properties that can be had for extremely low prices, through our economies of scale we can refurbish the investment property adding further value to your buy to let property. Our clients either use buy-to-let mortgages from banks and building societies to fund their purchases or purchase their properties with existing funds. One of the benefits of using a buy to let mortgage, it can allow for the majority of your initial funds to be taken out of the property and be ready to invest in your next property investment, thus helping you build a successful property portfolio.  It is worth pointing out that this is a long term financial strategy and is a time-tested strategy that endures all of the vicissitudes of the property market.

When you become a property investor, hiring a good builder can be tough.

When you make the decision to become a property investor and build a property portfolio one of the hardest elements is to find a reliable builder you can build a trusting relationship with.

Many consider doing the refurbishment work themselves, as the saving in costs is very tempting. However as far as housing is concerned, you really don’t want to find yourself in the position of having to give up your time, it will probably take you three times as long as a builder to get an unprofessional result. In addition is your building regulations knowledge current?

Have you considered all the many health and safety implications? What would you do if in error you make a mistake, it might end up costing you more money and trouble than it would have had if you had hired a skilled builder.

Therefore taking all of these considerations you have decided to allow a builder to undertake the refurbishment of your property investment.

However, your work as not completely finished, finding the right builder with experience in the work you require, at a competitive rate, is no mean task.?How can you find the best builder for your property?

Often overlooked confirm if the builder in a trade body – the Federation of Master Builders, the Guild of Builders and Contractors, or the National Federation of Builders?

Previous work, your builder should be able to provide references?

How many projects similar to yours has the builder completed, there is a difference from refurbishing a property to use for yourself and refurbishing a buy to let investment property. Do they have any formal qualifications? Many investment properties will require several trades to come the work, you need to ask if builder use sub-contractors?

Never take for granted any documents that the builder shows you regarding insurance these are very easy to replicate. Always ask for a detailed quote and what any additional items will be charged at, normally it’s either a day rate or per item. Should you need substantial structural work make sure you have a contract drawn up with clauses if the builder runs over the agreed time period.

Your builder should be able to provide a schedule of works with agreed stage-payments. It needs to be documented that all work meets building regulations, according to a council inspector.  Are you keeping the final payment until the work is complete and snags rectified?

You can now see why our customers come to Fossey Taylor as these are just a selection of the things you should pay attention to when hiring a builder. Therefore, as you build your portfolio of investment properties you can imagine how complicated it can get sourcing several builders for many properties, all at the same time.

When it comes to investing in property, the benefits of having a good team backing you can make all the difference between being a success and failing at investing in property.

Clearly there is much more to investing in property than finding the money or arranging finance. Many find that just having a mortgage to pay on your own home can be a source of worry, then factor in the financial commitments of additional properties, in addition you have project management of any building work, meeting landlord responsibilities, finding tenants, chasing rent, being available to take a tenant’s calls 24/7 – the list goes on. This is why many property investors chose to use a company like Fossey Taylor to reduce the risk and the stress of building a property portfolio. Some of the roles and responsibly that you need to be aware of should you chose to go it alone in your quest to become a property investor.

• Letting agent – Sourcing tenants, referencing tenants are just too of the tasks that can take up a lot of time and are required to let a property.

• Insurance broker – you will need the correct buildings insurance for any properties you rent out. Something to consider would be rent guarantee insurance. Be aware of the terms and conditions for any such insurance and it meets your individual requirements. A company that has specialised knowledge helps, and one that reduces their premiums for multiple properties is a must.

• Gas safety checker – it is a legal requirement for any rented property to have an annual gas safety test. (A good tip is to get the details of the company your letting agent uses and approach them directly; you will save the premium the letting agent will add to their bill)

• Project Manager, should your buy to let property  need remedial prior to letting or maintenance work on a property once a tenant has been found, you will require to source and interview building contractors and trades people to carry out the necessary works

• Surveyors – they will value the property, so you can know the true market value. Then you can make an offer with confidence because you know your numbers. It may be prudent to accompany them when they visit; then you can communicate your criteria and thus avoid any unnecessary marking down of the value of the property

• Sourcing property, this can take up far more time than the beginner investor often budgets for; you need to build relationships with numerous key persons to ensure you are buying your property at below market value.

Why not come along to one of our informative investment workshops?

Due to the announcements in the budget could 2015 by the year of the ‘BUY TO LET’ pensioner?

Due to the chancellor recently unlocking of rules on how people can access their savings in retirement, could a new breed of ‘buy to let pensioners’ be ready to enter the local property market?

In the wake of the Chancellor’s Budget announcement that savers will be allowed to withdraw their entire pension fund from the age of 55 or over, rather than take the money slowly as an annual income, such as an annuity.

Already there is much speculation and interest amount many within the investment property industry, since the last Budget introduced the following: pension savers could draw down some or all of their money to invest in options such as buy to let property

The speculation if fuelled further with recent surveys reporting that buy to let investments have outperformed all other mainstream investments over the past 18 years. Thus making investing in property an extremely attractive option for anyone wanting to safeguard their capital and maximise their income in retirement.

As with all major purchasing decisions we believe that anyone considering their first move into the sector should take expert advice and carry out due diligence prior to starting to invest their pension.

As shown in recent research buy to let continues to offer great opportunities, but potential investors must have a clear strategy, and it should never look upon it as a get rich quick scheme

Jesse Fossey Taylor comments “The pension reforms have ignited a significant amount of interest in buy to let property investment as a viable and attractive alternative to more traditional pension plans.”

Jesse further states “We have found demand for quality, well maintained, rental property remains high and even before the recent budget announcement both ourselves and our sister company Butterfield and Taylor Lettings are experiencing a growing number of enquiries from people seeking advice and guidance on how to enter into the lettings this sector for the first time.”

Over a third of Britain’s 1.4 million private landlords already view their buy to let portfolio as the main component within their pension plan – with the relative ‘safety’ of bricks and mortar investment coupled with regular rental returns as income, making it an attractive investment choice.

Ila of Fossey Taylor comments “Although there has been a lot of press and excitement generated by the new reforms. I would always recommend to a potential customer that if they are looking to use pension savings to fund a buy to let investment, they should take professional financial advice and then sit down with us to map out a strategy for their property portfolio goals.”

One of the keys to building a successful property portfolio is the importance of buy property at the right price, in the right location and to identify the type of accommodation that people will want to rent now and in the future.

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Fossey Taylor has extensive knowledge of Nottingham, therefore we can look in detail at potential property ‘yields’ – taking into account all outgoings, such as maintenance costs – and provide novice investors with a realistic expectation on returns.

There are many pitfalls and dangers in the world of property investing. Would you purchase this property for a #buytolet investment?

A potential investment property or not (3) Risks of investing in property

Dangers of investing in property Investing in property has many risks

A potential investment property or not (5) A potential investment property or not (4)

We visited this property on behalf of one of our clients as their construction knowledge is limited. As you can see the property has major structural issues and on this occasion we did not purchase this property.

A recent news story has reaffirmed what we at Fossey Taylor have known for a while, putting your money into a buy to let property will offer you the best return!

Several financial analysis compared UK commercial property, equities, UK government bonds and cash to buy to let property investments “Buy to let investments have outperformed all other mainstream investments over the past 18 years” and that this pattern is set to continue over the next 10 years.

The most profitable investments prove to be those properties which are purchased with a 75% loan to value, interest only mortgage, therefore if you have the cash available to purchase a property outright, you should consider purchasing multiple properties with a mortgage, allowing you to spread your money over several investments and benefit from capital appreciation on numerous properties instead of just the one.

Of course, ensuring that you invest in the correct properties will have a huge impact on your ability to achieve great returns and property is not a failsafe option. It is vital that you choose which property to purchase wisely and that you consider the area, the on-going maintenance cost and how desirable the property will be to potential tenants.

If you are considering investing in property and would like informal, no obligation help and advice with property selection please contact the team at Fossey Taylor on 0115 824 8484 or hello@fosseytaylor.co.uk