Property Investing

Hey everyone,

I have learnt a great philosophy this week, one that I just had to share with you: ‘It is all about the cashflow’.

Now I know for the last few weeks, I have been harping on about going on a property course – well I have done it, and it was incredible!

I am actually shocked by how little I knew about the property market, which made the course all the more insightful. [...]

If you are looking to make money from buy to let investment, two factors are crucial.  In order to achieve capital growth you need to buy good property and to achieve income you need to find good tenants.

Properly vetting tenants and taking the time to choose the right tenants for the right property has been one of the main factors I have concentrated on during my property investment career.  Bad tenants have cost me a lot of time and money.

There are many landlord resources out there, and as someone who has made money from investment in property, here are my four top tips to finding good quality tenants.

Word Your Advertisement Well

If you are careful with the wording of your newspaper or internet ad, you may well attract better tenants.  I advertise my properties as ‘well cared for’ or ‘immaculate’ as it suggests that I only let great properties and that I expect my tenants to treat them in the same way.  If the property has a special feature – in a village location, near a great school etc – then say as much in the advertisement.  I find that it means that great tenants looking for specific lifestyle choices will respond, not simply anyone looking for a place to live.

Be Professional

I read a recent survey that found that almost half the tenants questioned ranked the appearance and attitude of the landlord and the landlord’s staff as the most important factor in selecting their present place to live.  When I show a property to prospective tenants I always make sure I am smartly dressed, on time, and that the property itself is in good order.  First impressions last.

Vet Tenants Carefully

I take great care in examining the tenants I consider for my properties.  I think nothing of asking them to provide identification, payslips and other references.  I know of landlords who insist on an employer’s reference alongside a reference from their previous landlord or letting agent to confirm good previous conduct.  This does put some tenants off, but if they aren’t prepared to confirm what they earn, I don’t want them renting one of my properties.

Look at the Long Term

The main way I have saved and made money from investment in property is by finding those tenants whose intention is to stay in the property for the long haul.  Tenants who just want a six month agreement might help you in the short term, but you will incur advertising fees, possible redecoration costs and other expenses when they leave.  Finding tenants with permanent jobs who are looking to settle down in a certain area means they are much more likely to stay in the property for a long time, meaning regular, consistent income for the landlord.

Investing in a property is getting even easier according to the CML.

I was reading an article the other day that was looking at the differences between salaries and mortgage repayments, and according to the report it has supposedly fallen by 14.4% in the last year. Now I know you’re probably wondering what has any of this got to do with you as an investor, but if like me you are using your own money to fund your properties, this is great news. [...]

Hey Everyone,

I am officially on countdown to my Property Mentor course and I cannot wait! Hopefully they will be able to answer all the grey areas I have got in my investment experience

For example – where are the best places to invest? Now I know that by researching and stacking my properties effectively, I can ensure that the properties I invest in can each provide me with a positive cash flow of £500 per property, but surely I must be missing out on some hidden property gems? [...]

Buying property at auction is a great way to invest in property and I really recommend you look at it.  Auction properties offer great returns on initial investment and as long as you stick to your budget and do all your calculations before you attend the auction.  Being prepared for an auction is the most important.

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Hey everyone,

Talk about starting the year with a bang. As an investor I pride myself on being able to see the positive side in all news stories I read about the Property Market. After all, what may seem bad to one person is great news for another.

Take falling house prices. When I first read about property prices dropping by £1,000 a week, I didn’t think ‘oh no, my current properties are going to depreciate in value.’ No. I started calculating all the property bargains I was going to be able to invest in, and the capital growth I would experience later.

Get what I mean? I managed to turn bad news into something positive. It is all about perspective, and seeing the property market for what it really is. [...]

Hey everyone,

Hope you all had a great xmas! Now I don’t know about the rest of you, but I have always found Christmas to be a quiet period for property investment. We all seem to drop off the radar, but I’ve started to think that this is a big mistake. [...]

Hey everyone,

God I feel like 20 questions recently, but I have got to ask if anyone else has read the property investment savings accounts piece?

Well I know I have and I was shocked. It really put things into perspective for me.

Let me explain.

In the article they struck a direct comparison between the impact the 2.5% interest rate cut has had on property investment and on savings accounts. And it made a really valid point. [...]

Hello Everyone!

This is the latest property of the week curtsey of Property Mentor, the property investment experts. It”s based in London and is a lovely 4 bedroom property.

Area – London
Property type – Split Level Maisonette
Number of Bedrooms – 4
Length on Market – 3 Months
Valuation – £340,000
Positive Cash Flow – £1,400 per Month

[...]

Hey Guys,

I know many investors tell you to try and avoid student property, but I can’t see what the problem is? So I was wondering if anyone else has an opinion on it?

You see in an article I read the other day they talked about how of the 5.6 million students who choose to go to university each year, only 30.12% of them are provided with accommodation.

Do the maths and that means 3.85 million students across the whole of the UK have to look elsewhere to live.

Well I don’t know about you, but this got me intrigued, so I started looking around to see what the cash flow for these types of properties was and I was pleasantly surprised with the stats that I found. [...]