What are the basic principles of investment? Buy low sell high. If you are able to follow this formula with all your transactions, you’d do very well for yourself. Impossible, right?
But there is a way to do this consistently. Through property investment. It’s called Buy & Fix. Americans call it Buy & Flip.
For anyone with money to invest, one of the go-to options for most people is property. Whether you are looking for a single property investment or are going to delve deeper with a full property investment portfolio, it’s vital you understand the sector. With money to spend, there will be no shortage of companies offering their services. Your options will be wide-ranging and varied, but it’s often beneficial to work with one company, especially when you need a mortgage too.
With so many different types of properties around, it’s easy to be overwhelmed by the choices that present themselves. When you are looking to invest in property, finding the right one for you that’s going to make you money over time can be a challenge in itself. When you also need to apply for a mortgage to fund your investment, many people are daunted, but there’s a way through all the paperwork.
In the 21st century, there are many ways to buy property, especially when it is going to form part of a property investment package, rather than buying it to live in. They include:
Often the first port-of-call for investors is the traditional ‘Buy-to-Let’ scheme. This kind of property often includes cheaper properties that specifically appeal to this market. Houses that are terraced or semi-detached are generally high-yielding in terms of rental income, making them a common investment. They are bought specifically to be let out, rather than lived in.
In towns and cities with universities, there is usually a large market for student accommodation. It’s a market that continues to grow with constant turnover. The outlay is often small, but the returns on rental can be huge. The properties themselves can be compartmentalised to cater for more people in self-contained rooms. It also allows investors to offer payment plans and property management services.
Similar to those properties above, HMOs are popular amongst investors because of the rental income they can provide. These are usually larger properties that have, or will be, converted into smaller bedrooms but share common facilities.
Of course, whichever investment opportunity you choose, you are always going to have to fund it, especially if you’re new to the sector. This will invariably mean applying for a mortgage. They are one of the biggest opportunities and also the biggest challenges for investors. A mortgage allows any investor to expand their portfolio quicker (assuming your financial calculations are right) and gives a higher rate of return.
With so many hoops to jump through and forms to fill in, many investors find it beneficial to manage their property portfolio and mortgages utilising just one company. This gives peace of mind when it comes to expanding. When you’re in good standing it helps them to understand your business better as it grows and they may be able to offer more attractive terms than what you would otherwise get.
Property is always going to be something people need, so there’s always going to be a market for it. Property investing isn’t something to enter into lightly, but there’s always room to grow and to learn. With the right property investment package, you can move on by helping people to move in. So, if you are looking to invest in property, Repossessed Houses for Sale is on hand to help. To contact us today, visit our contact page for more details.
If property investment wasn’t confusing and stressful enough, there are a number of things to look out for when viewing your ideal home. These can include anything from insulation, mould or even the roof.
If you have a property which you are looking to buy to let or have any existing properties and want to know what a good rental yield is, we will be going through it in today’s blog.
A repossessed house is one that has undergone foreclosure. You might find that getting such a house involves more steps than a regular house. There are many advantages for getting a repossessed house with the main selling point being that these houses usually come with a price much less than the market value. If you are looking to save money and are willing to put in the extra effort, this is the way to go. With that being said, here are a few things to keep in mind before investing in a repossessed house.
Buying a repossessed house can be of great value to your financial situation. Repossessed houses are mostly sold at a price below their market value because the auction that is selling them wants to recoup their original costs. Moreover, you will have to pay only for the legal fees and for other things of daily use that are being sold along with the house.
Here are some of the most common mistakes that people make while buying a repossessed house:
It is possible that you are the owner of a property you invested in, and you have tenants living in that property, from whom you collect rent? Now if that is the case, you must declare the rental income you receive from this when you file your taxes.
When a homeowner defaults on a mortgage or any other financial agreement, the lender can seize their property. They will then sell the property to get back the money the previous homeowner owed them. (more…)
A repossessed property is a home that has been taken by the lender due to the fact that the person that was living there wasn’t able to pay the mortgage. This property is then sold on to recoup the lender’s money, this means that you could get a good deal and a bit of a bargain, as the lender usually wants to sell quickly, and the property will be a lot cheaper. Most repossessed houses are sold over estate agents, therefore, in this case, you might not know that the property is even repossessed – possible signs that the property is repossessed could be that the property is on the market for a lot cheaper than you would expect and the home is vacant.
The list of errors common to so many inexperienced investors is wide, especially in repossessed properties, but there are some errors that are easy to avoid, after learning to understand where and how you made a mistake when you aim at a market rich in opportunities such as that of investing abroad, and how to keep yourself safe from false steps to be able to invest in healthy markets and with adequate rents.