From TV programmes like Location, Location, Location and Grand Designs to glossy coffee table magazines, there’s a wealth of advice and guidance out there to help you get on the property ladder and make the most from property ownership. It looks a glamorous and fun hobby… but don’t be fooled, it takes a lot of hard work and expertise!
At CXG we are a dedicated team of professionals who pride ourselves in our knowledge of the property industry. We want to help you in building a property portfolio and make sure you avoid the rookie errors. Here’s a few examples to be aware of!
1. New vs Old!
Beware investing in older properties – these can sometimes drain your finances through ongoing maintenance costs. Remember new build can come with a builders’ warranty – worth its weight in gold.
2. Don’t follow the crowd
Don’t buy in an area where there is an oversupply of properties. Rents will be low and capital growth rates limited. Without capital growth, you may not have enough future equity to use as security to purchase additional properties.
3. Location, location, location
Challenge yourself to consider properties and locations that are further afield and outside of your comfort zone. You don’t necessarily need to invest in property close by, you may well generate better yields from property in other areas with higher demand for student accommodation, for example.
4. Don’t spread yourself too thin!
There’s a real art to selecting the right tenants. Getting the right people in the right place will make your property investment journey a much easier ride. If you can, try not to select your tenants yourself, use a qualified property management company.
5. Don’t be impatient!
Patience is vital. An investment property should always be regarded as a long term investment – a way to step higher up the housing market ladder to purchasing a portfolio of properties that will fund your retirement.
6. No goal, no plan
One of the biggest mistake is not having a clearly defined goal and strategy for how you will achieve it. It’s all in the planning! How many properties do you wish to purchase? How will you finance this? Who will manage the properties?
7. One stop shop promises
Don’t fall for property investment courses that promise the world and claim to make you a property expert after just a few hours of study! You could be fooled into spending several thousand pounds but still end up with little knowledge or confidence.
8. Don’t do it all alone!
You can’t be an expert at everything. Key to building a successful property portfolio is to let the experts guide and support you along the way. Seek help.
We offer free, impartial advice and support. So why not join our growing band of buy-to-let landlords and secure your future prosperity?
Contact us now and start your buy-to-let property journey.