So often I hear people say “I’d like to invest in a property but what happens if interest rates rocket, prices fall, tenants trash the property, rents are unpaid, voids etc etc “
Telling it straight, no one knows if these things will happen or not. I can only speak from experience and share with you some of the steps we’ve taken to protect ourselves from the worst that can happen.
Amateur Property Investors tend to forget that it’s a business which you need to manage efficiently and add as much value as possible. Over the next few weeks I will share with you some of the steps we take to ensure our business flourishes and we are protected from the unexpected.
Adding value will give you the edge, improve your success and help to protect you in tougher times.
There was an excellent discussion on the subject on the Property Tribes forum recently which is worth checking out click here
My tip is to always consider difficult properties, they can offer the greatest potential and give you more negotiating power. Many of the properties we have purchased have been the ones that others shy away from and have dust on the details at the estate agent's office. However, one criteria we never compromise on is location. Most other things can be resolved and often cheaper and easier than you might think.
Always do thorough research and be fully aware of the difficulties of a property then tackle it head on. We find neighbours, planners and tradesmen are only too happy to tell you the negative points about a property you might be interested in purchasing. Use these valuable and free tools to your advantage.
When adding value you need to be very disciplined with your budget, shop like it’s your last pennies and always ask yourself twice if you really will get the money back (+ profit!).
Don’t treat your investments like a hobby or an excuse to practice your interior design skills – unless you plan to make a living exclusively from interior design. Your customer really won’t appreciate it. Buyer or tenant, they all like to put their own stamp on a place so keep it simple, clean & fresh. We've sold some high value exclusive property with very simple finishes.
And for the gadget gurus I have to add, please don’t think that adding all the latest sound systems and wireless/remote control gadgets is going to add value to your property. At best it is going to impress and maybe help sell it. It is not going to make you a profit.