Good morning Nuneaton property hunters. This is something I have been meaning to write for some time, and that is, not to get emotionally attached to your Nuneaton investment property. I recently did some viewings on a potential investment property with a Nuneaton Landlord who contacted us through our blog, and he took me up on the offer of coming along to viewings and giving him my opinion.
This landlord is from the Whitestone area of Nuneaton and when I told him to achieve the yields he would like to achieve he would be looking at 2/3 bedroom houses in particular areas of Attleborough, Stockingford and Edward Street, the landlord was sceptical as he couldn’t see himself living in these areas.. this is where I had to explain that you cannot let emotion come into play when purchasing a BTL property as just because he wouldn’t live in these areas, doesn’t mean others would not.
They say you make your profit when you buy a property, not when you sell it, as you are a little more in control of what you pay rather than what you are forced to sell for. With this in mind, why pay the high end retail price for a property just because it looks sweet & idyllic, when what you need is a property that meets all the financial requirements of a landlord first & foremost? It is so easy, especially for the novice property investor, to fall in love with a property and let their heart rule their head, and to become so emotionally involved that they lose control of their finances and let their emotions win. The most important message to convey in all of this is that investors MUST buy well in the first place, because if you start the investment processes in the wrong place, the rest of the mathematics that need to be in place to validate this transaction just do not stack up. If a property price is too high, and you just cannot get anywhere negotiating some money off the price, then there is one thing to do and that is WALK AWAY, there will always be another opportunity along soon.
The rookie investor often thinks that by paying more for a property they will get a better property (not necessarily true, again, just buy well). They cannot reasonably expect the market, which is an average of many transactions and house prices, to change its tune in order to meet them at their now unsuitable level of return (yield) that they expect, simply because they paid too much – market forces don’t work like that. If a property investor is not sure on the potential rental levels for a given location, just get them to speak to us for free, impartial advice. We can let them know not only how much rent to expect, but from that we can advise them how to work out what the maximum is that they should be paying, and how ‘letable’ a particular property may be – there is absolutely no point in buying something, or somewhere, where very little demand exists.
Check out the larger, more important facilities in the house such as the boiler, electrics and plumbing, especially when paying in cash, because many investors won’t do this, and if they end up buying a problem then they will own that problem.
If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, pop along and speak to us in person at our offices Bond Street or call us personally on 02477674545.