Property Investing

I have met many different types of ‘buy to let’ property entrepreneur in my ten years in the property business.  These range from high-flying property professionals with a huge property portfolio to the armchair property investor who is looking to make a passive income and supplement their pension income and lump sum in retirement.

You don’t have to leave your 9-5 job and sell all your assets to make money from property.  Many people I have met at seminars and property courses take time out from their own career to pursue property investing without giving up their main source of income.  It is possible to combine a career with buying investment property and there are various strategies you can adopt.

There are three main things that take up my time as a property investor.  In no priority order they are my tenants, the properties and the financing.

Finding and looking after tenants is crucial to the armchair property investor.  You should always be ruthless in pursuing references, information and other documentation to ensure the quality and veracity of your tenants at outset.  Make sure also that you have a watertight tenancy agreement signed.  If you are unsure, think very hard before taking tenants on.  In the long term you could very well end up spending more time and effort trying to deal with problem tenants.

It is also vital that you look after your tenants by responding quickly to any maintenance or repair requests.  Ensure the property is in good condition at all times and your tenants will be far more likely to stay with you for the long term.  You should also be careful when considering rent increases. A £25 monthly increase might result in your tenants moving elsewhere, leaving your property vacant for a period.  This void will very well cost you more than the £25 increase you had proposed.

It is also important that you look closely at the condition of the property you are buying.  New homes may have a slight premium in terms of initial price but they are much less likely to result in high maintenance costs in the early years.  Choosing a property with a large garden might appeal to families but is likely to cost you more in maintenance.

Ensuring you stay on top of the financing of your properties is also a major consideration.  Mortgage deals come and go and so making sure your finance is always at the most competitive interest rate should be any armchair property investor’s aim.  Most people buying investment property use mortgage finance and with a wide choice of products and lenders it is vital for you or your broker to stay on top of all the borrowings.

Investing in property isn’t the reserve of the super rich and so if you are looking for additional ways to invest in your and your family’s future, becoming an armchair property investor could well be an option that is open to you.