How To Start Investing In A Property

In these difficult days where the economic outlook is looking particularly tough, people are looking at ways to make their money do more for them. There are plenty of investment opportunities out there, some good, others not so much, but one of the most reliable and constantly successful is to invest in property.


If property investment is something you’ve thought about but never tried, or you’re just starting and looking to increase your portfolio, this is the post for you. 


While the price of the property may fluctuate in the short-term, it’s still seen as an attractive long-term investment, but it’s not without its risks. You must understand the market in your area and the risks associated with any investment before you start.

investment property

Property Investment 

Property investment, at its core, is about buying property, whether it’s housing, retail units, or warehouse space that you can either resell later for more money or use to create regular rental income. Many investors opt to buy houses that are in a state of disrepair and require a degree of refurbishment. They can then carry out the work quickly, and sell it for more money, which is known as flipping. This is one of the most common ways to invest, but it’s far from the only one.


The secret to any successful investment is a simple formula. Buy low and sell high. This is something you’ve probably heard before, but it is true for all investment opportunities. So to make a profit by investing in property you need to buy a house below market value. This sounds impossible, right?


Buying a repossessed property is the most effective investment opportunity in the housing market. When a home is repossessed it will be sold quickly to recuperate the money owed to creditors. This means there are lots of properties being sold below their typical market value. If you can find one of these properties and invest, you can create a high profit from a low-risk investment.


Another viable option for those looking to invest in property is the ‘Buy-to-Let’ model. This involves buying a residential property and, instead of reselling it for a quick profit, the property is rented out so you can cover the mortgage payment and make a profit as well. There are also some tax benefits on Buy-to-Let properties which allow you to offset some costs against your tax bill.


Investing in property, more so than other opportunities such as stocks and shares, can deliver a high reward with less risk. But you need to understand your financial circumstances before you dive in. For example, your existing incoming and outgoings. This is something only you can understand. 


There is, of course, always a risk when investing in anything, not only property. However, property remains a consistently good opportunity for investors, but nothing is guaranteed. Do plenty of research, understand your local markets, speak to experts, find the right property and you may well be on your way to delivering a high return on your investment.


We hope that our blog has been helpful please don’t hesitate to get in touch with us by emailing and one of our lovely team members will get back to you as soon as possible.

Differences Between Purchasing a Repossessed Property and a New Build

Are you a first-time buyer looking for that ideal foothold to start a new life in? Are you unsure whether it’s worth looking for a new build property or a repossessed home? It can sometimes be tricky to get clarity on which option is going to be best for you in the long run. This is especially the case when you consider that there are so many positives to either choice!


First Time Repossessed House Buyer: Everything You Need to Know

repossessed house image with keys


Are you considering the purchase of a repossessed house? It is a practice that can make sense for the buyer as it does carry benefits. But if you are a first-time buyer there are some important points you should note.

How can I find a repossessed property for purchase?


Just like a ‘regular’ property a repossessed house can be sold via an estate agent. You can also find many through an auction house. Auctions tend to be used when a mortgage lender wants to achieve a quick sale to clear the debt as fast as possible. Sometimes a bank or other financial institution may sell through an estate agent as this can be a way for a higher sale price to be gained.

How do I know if a property for sale is repossessed?


When looking at a property with your estate agent you can always ask them if a property is repossessed or not. If you are looking at an auction sale, the auctioneer’s catalogue may state something that relates to it being a repossessed property such as ‘’by order of the mortgagee’’ or ‘’by order of the receiver’’. But if you remain unsure, just contact the seller’s solicitor.

Will buying a repossessed house be cheaper?


Often, yes. This is because mortgage lenders will want to have their repossessed house sold quickly and so will often price them below the market rate. You will find that a repossessed property can sell for up to 30% less than the private sale norm.


Having said this, keep in mind that a lending institution that is selling a property under a repossession order has a legal duty to gain the best price possible.

people moving into a new home

Are the legal requirements the same?


Essentially, the legal requirements of buying a repossessed home are the same as buying any other. Just use some caution with how points can arise over the fact that the lender lacks personal knowledge of the property and so the transfer is under a power of sale. Prepare for the lender’s solicitors not being able to answer most questions you may have and instead be ready to do the legwork yourself and any costs that may arise as a result.


One thing you may like to do is ask around the neighbouring homes and see if they can enlighten you over any issues around the building you are interested in.


Do contracts work differently?


Contracts are an area that does hold a difference to a regular sale. Normally with a repossessed property, a lender will have a standard form of contract where they will accept no amendments. When looking at the clauses you may think they are somewhat unreasonable but in truth, it is usually not worth arguing for any changes as there is a high chance a lender would prefer to just withdraw from the sale as opposed to amending the contract. It is for this reason that an interested party may want to suggest that the exchange and competition take place at the same time. Usually, a lender will agree to this, after all, they do not have an onward chain to worry about after a sale. 


If you are a first-time buyer then the process can seem very daunting even when looking at regular properties but a repossessed house carries a few extra considerations. This said, it does not have to be a daunting process and hopefully, some of the points we have explained in this article will make it even less so and you can enjoy a great new home at a nice reduced cost. If you have any questions please don’t hesitate to email us. 



What is a Repossessed Property?

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.