Whilst property can be a very ‘hands on’ investment, some novice buy-to-let landlords often make fundamental mistakes, which can turn property into a financial burden. This can easily turn would be great investors away from a lucrative area.Recently, you may have seen the scare-stories about buy-to-let being a risky investment, and it’s true that the risks of increasing interest rates and lowering rental yields means ‘amateur hour’ in property investing is coming to an end.
But read on to find out how to avoid simple, common mistakes.Whilst property values can go down as well as up, particularly in the short term, if you prepare well and get the knowledge and confidence to minimise the risks and avoid the pitfalls you can easily make lots of cash by Investing in Property.There are still generous returns awaiting investors in UK, Spanish and Florida property. The key is good solid knowledge. You must avoid and understand the common pitfalls.Lets look at some of things to consider when entering the buy-to-let market:
Mortgages-The difference between the best and the worst rate can be hundreds or even thousands of pounds – this will quickly kill the profit in your investment.
Refurbishment and maintenance- Do you know exactly the hourly rate you should be paying for plasterers, electricians or plumbers? If you do not budget properly – and negotiate smartly – you can loose hundreds or thousands of pounds.
Rental voids – avoid by proper forward planning.Even the most successful landlords experience periods when they have no tenants. We’ll teach you how to minimize your rental voids, and make them part of your planning.
Lettings agents – know some basic facts about them. Check them out before investing time, money and potential profit with them.The right agent, properly managed, is an asset maximizing your rental return. The wrong agent badly managed will draw the profit out of your investment and drive away your tenants. Choosing the right lettings agent is vital to your success.
If you avoid these pitfalls and many more you will be well on your way to successful Property Investing.Proper planning means you can build a deal that “stacks up” every time.