Our blog this month is all about increasing your letting property portfolio and how you can take action to do so over lockdown, read more here
There are several key questions you need to ask yourself when looking to invest in your next buy-to-let property. You need to be prepared for all eventualities, especially when it comes to those all-important profit margins.
The current situation in the UK may give you some extra time to plan your future investments, but what should you know before taking the plunge?
In our experience, profits are made when you buy, not when you sell a property. Keeping a positive cashflow is key. So, what happens if the property we’re considering:
…is the worst on the street?
Physical signs of a rundown property are easy to spot with a trained eye. Does it look unoccupied? Is there a skip outside? Does it look ill-maintained – the worst in the row? If so, this could be a prime opportunity to invest. Have your agent do some digging and see what they can find out.
…is being sold at auction?
Auction properties are often sold at lower prices than they may actually be worth. Don’t get us wrong, it’s not always like Homes Under the Hammer, but there are hidden gems out there just waiting to be snapped up.
Your agent will do the homework for you – if the jobs list outweighs the profit margins, then it’s not for you. Stay out of the bidding room. That way you will avoid getting carried away in the moment and blowing your budget.
Ready to flip?
In our experience, there is a simple rule to follow when flipping properties for profit. We call it Five to Flip. Our five key areas to work on are flooring, décor, the kitchen, the bathroom and the garden. If there is more to do, then it could be too much. There are always exceptions to the rule, and your agent is the best person to advise you on the best way forward.
Contact us today to learn how we can help you with your property portfolio, we’re happy to provide you with our expert advice and ensure you make the right decision depending on your circumstances during the lockdown. Why not call us on 01234 290685 Or drop us a line at email@example.com.