Advice for Property Investors - new or experienced

Please take the time to read this - and then read it again

Do not get involved with this business unless you are serious and intent on making a success of it.

If you are the type of person who changes their mind a lot, it could cost you.

The biggest problem we have is with greedy people - if you want everything now, you will be disappointed. This business is no different to any other in that respect. The property business can make you a fortune, as long as you are sensible and realistic.

Be certain with your choices before you reserve.

If you are seeking advice or information from 3rd parties - be very careful. I spend a fair amount of time every day talking to people regarding property potential, sites etc, and here is a typical scenario:

(Investor) "I am interested in such-and-such a property, but I have heard/read an article/spoke to a friend in the pub and they said blah blah blah (negatives for 10 minutes)"

(Our response) "Is this person a successful property investor with a track record that is giving you good impartial advice? Because if they aren't, how can their advice be of any use? What is the motive behind their language? Talk to an expert and if the reasons to buy outweigh the reasons not to get involved- buy it. "

Everyone seems to have an opinion about the property market, whether they actually know anything about it or not.

Do not even consider reserving a property unless you are going to see it through to re-sale or completion. Reservation fees and pre-payments are not refundable for many reasons, here are the main ones: if you reserve a property, the vendor removes the property from the market and therefore loses the potential to sell it elsewhere. if you subsequently back out of buying, they then incur extra costs and effort remarketing the property. They will also normally break their relationship with us, removing the opportunity to sell the property and hence we will lose any income. We will not recover any costs incurred in our previous efforts marketing and selling the property on their behalf, and the irreparable damage to the association plus our credibility level becomes a problem.
Although we will "hold your hand" from start to finish - it is up to you to ensure that everything is done that can be done to enable a successful purchase.

Do your homework and don't be lazy. Their are numerous websites and companies who will tell you want you want to hear - some of the information may not be true (gasp, really?). Although we may give examples and situations, we insist you check out your personal status in matters, for example:

We don't give out mortgage figures - and aren't licensed to give financial advice. Your mortgage offer will be subject to your own status and determined by the deal you take from your financial advisor/broker. We have had people come to us to buy property who have a poor credit record and are disappointed when they are either turned down (losing prepaid fees) or get a high rate of interest buy to let mortgage offered. If you think you may have a problem with your credit history, get an Experian or Equifax report first. For the sake of a few quid, it could save you a lot of money. You can still get a mortgage if your record is not pristine, but rates etc will be different to Mr Squeaky-Clean.

We can't tell you exactly what the rental income will be on a property. Occasionally we will ask 2 or 3 letting agents for a figure, put them on the site so you can have a guide. The agents names are listed in these cases so you can check them out yourself.

We can't guarantee how long it will take to sell a property. Whether you plan to sell your off plan purchase before completion or it is your own house, don't ask for a guaranteed time scale. We have sold properties for clients in 10 minutes, and in some cases in can take months.

When you reserve a property, make sure you do exactly what your advisers tell you. You normally have a period of 28 days to exchange contracts on a property. When your broker, lawyer etc ask you for information, or you have documents to return, DO IT IMMEDIATELY. The seller of a property has the right to withdraw from the sale if the time scale is not adhered to. They don't always do this - but don't take the risk.

Don't listen to what most people tell you about the property market. They probably do not know the facts and figures and are often talking complete rubbish. People can sound as though they know what they are talking about and are very convincing, even quoting their experiences. If they have had any bad experiences, you will usually find out they have not given you the whole story. The problem was usually of their own making.
You may hear how bad it may get in the future. The Halifax , Nationwide , RICS and every other property commentator has hardly been close with their forecast of house price growth forecast of house price growth, even in this current year! Have a look at this

The truth is, it never has been bad, ever! Even including the 1992 UK period of doom that never appeared. If the people that were "jumping out of windows" in the temporary dip of the early 90's had held on instead of selling, they would have made a fortune. Property values doubled in the ensuing 10 years.

Only take advice from other professional property investors, who will have plenty of positive experiences.

If you think you can make money quickly, without any effort, do not get involved (at least not with us). To maximise your return on a new property purchase, you must wait to sell and realise the gain. Why? for one main reason: those gains are much higher when the site has settled after build, and a few properties have changed hands a few times. In most cases, you can buy a property that has a degree of equity (profit) at purchase. This sometimes attrracts the wrong type of investor. We do not want to do business with "chancers" - it can take 2 to 5 years to build a successful portfolio.

Do not assume that if something applies with one property transaction, it applies to the next or another. Every purchase is different in some way.

NOW GO BACK TO THE TOP OF THIS PAGE AND READ IT ALL AGAIN