Key Info For ANYONE Interested in Property Investment. Plus Your Questions Answered!
Welcome back to the Progressive Property Podcast. In this latest episode your host Peter Jones, takes a look at some of your questions and tries to answer them. Peter answers questions on which regions are good for property investments, do you need to relocate as an investor and actually where do investors buy property? With fascinating and insightful answers Peter gives you some really key info for anyone interested in property at whatever stage of your career?
Key Takeaways
Can Any Region Of the UK Work for a Property Investor? Yes, there will be deals everywhere. Peter recommend researching which property strategies works in your region. HMO’s, serviced accommodation and commercial refurbishments will work in most regions. The only strategy which is more region is buy-to-let’s through the BRR model which can be difficult in some regions such as London. Returns in London might be 3 or 4% which is hard to sustain cash flow.
Do You Need To Relocate? No, can you find a JV partner, who can help you source the area for you and help you find properties. Sometimes you can do this from a distance, or you can relocate but you don’t have to. People do relocate into different regions but like all these things it depends on your circumstances and your strategy.
Where Do Investors Buy Property From? This does depend on your strategy, as different strategies will dictate your different options. For example, with buy-to-lets, you can go to Estate Agent which is a really simple, easy way to find properties. There is more than enough properties to cover different investors in your area. Your job as an investor is to go through the detail and make sure the numbers add up. There are other more creative ways to find properties such as gorilla marketing as you are going directly to the vender. Property auctions can be helpful but if you’re new to property it can be difficult as there is a lot of groundwork beforehand. You can pay out a lot of fees before the auction and still not get a single bid in.
How Can I Spot A Good Area? What Signs Are There That The Values Will Rise In The Area? An area is only a good area if your strategy works in that specific area. It doesn’t matter if your prices are going up if your strategy doesn’t work. Then it’s not a good area. There is an argument that property investors should focus on cash flow rather than capital values, higher values aren’t always helpful. Individuals investors can’t change the market. Infrastructure and the geography of the city with the relation to the suburbs, such as areas which are improving can all affect the market.
Are There Other Ways Of Making Money From Property Not Just Buying and Selling? Yes, there are other ways like packaging up properties or sourcing properties. Some of the properties that we look at and don’t buy it might work for other people. Not everyone wants to be a professional investor. Some people would like a small extra income. You can do the deal and then sell the deal on. Another reason might be when you have a large number of properties you could set up your own Letting Agency. Another way is to educate people in property through mentoring for example.
Should I Only Buy Properties Near Where I Live? There are advantages to buying near where you live, as you know the local area, the potential suburbs which you can use and it cuts down on travel time. You are leveraging yourself in that regard. There is a downside however in that you run the risk of managing these properties and getting bogged down in tenant complaints for example. Purchasing at a distance forces you to allow others to manage your properties. It can be helpful to buy near where you live, but not necessarily.
Best Moments
‘Most strategies work in most regions. Except for buy-to-lets through BRR.’
‘Your options are always dependant on your strategy.’
‘If something is easy and something is hard always try the easy first.’
‘Make sure you do your due diligence.’
‘It doesn’t matter if your prices are going up if your strategy doesn’t work then it’s not a good area.’
‘Cashflow is the foundation of everything.’
‘Values tend to go up with improvements to infrastructure like a new road, or a new business.’
‘The past can be a good guide to the future.’
‘We all buy for different reasons.’
‘Many people would like to be mentored by someone only a few steps ahead rather than someone light years ahead.’
‘You have to buy property that works for you.’
VALUABLE RESOURCES
Join the Progressive Property Community here:
http://www.thepropertyteacher.co.uk/
If you’re interested in finding out more about the right mortgage product, please email ThePropertyTeacher@gmail.com and Peter will put you in touch with his mortgage broker.
ABOUT THE HOST
Peter Jones is a Chartered Surveyor, an author and a serial buy-to-let property investor. He has been involved in property for over 35 years and now owns 78 letting units. He is still actively involved in buying and renovating property, and regularly flips properties for profit. Peter has written a number of successful property books. The first, An Insider’s Guide to Successful Property Investing, was first published in 2000 and was
one, if not the very first, book of its kind which was written for what we’d now call buy-to-let investors. On the back of its success, he was invited to be a guest writer for Property Secrets and wrote Spanish Property Secrets, French Property Secrets, and Portugal Property Secrets. He has since written a number of other successful titles dealing with UK investing including 63 Common Defects in Investment Property and How to Spot Them, the highly acclaimed The Successful Property Investors Strategy Workshop and The Property Renovator’s Workshop ,in which Peter describes step-by-step how he built his own property portfolio, starting with virtually none of his own money.
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