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Here are the scariest mistakes people make in property 

We’ve decided to share the scariest mistakes that people make when investing in property (So you don’t make the same ones too!)

Expecting Too Much, Too Soon


You agree your purchase or hand over your healthy investment and expect to be funding your first class ticket to Dubai the following month… Well, we hate to be the ones to break it to you but property is a long game and your returns will not arrive straight away. One of the huge perks of investing with us is that you can understand exactly what your return will be, when it will be, and you can hand over all of the risk to us. If you’re making the decision to invest in property on your own, be warned, you get out what you put in and if you’re cutting corners and seeking out those cheap wins, there might be a few bumps in the road to come.


Right Property, Wrong Location


What’s the saying? “Worst house on the best road”? Well yes, to a degree but only if the surrounding roads and area are desirable and tie in with your strategy. Would it attract the right kind of tenants or buyers? Is the strategy for the property right for the area such as HMO, serviced accommodation, or family home?


Forcing the Numbers


You see a property; you think it’s ideal. It ticks all of the boxes on your viewing checklist, and you fly straight into putting an offer in, right? WRONG. You MUST do your due diligence.

  • Calculate the cost of the refurbishment

  • Look at nearby sold prices on Rightmove and Zoopla

  • Are there any similar properties on the market nearby so you can get a live price comparison?

  • Have you spoken to the agent about rental prices in the area?

  • Do the numbers work with your strategy?

  • Are there any plans for future regeneration in the area?

Only when you have worked through the numbers and fully understand how they work with your strategy, should you place that offer. The last thing you want to do is start messing agents around.


Not having a clear exit strategy


Going “all in” can be great… But that’s the easy part! Getting out with your healthy profit can be a little trickier! It's important to think about how and when you plan to sell or refinance your investment property and make sure you’re prepared for it. Having more than one exit strategy is always the preferred option so take this into account when viewing and making offers.


Being too emotional


It can be so easy to get carried away when buying a property, especially if it's your first investment. It's important to stay rational and make decisions based on solid financial goals and well researched strategies.


Do you want to know more about investing in property in a sensible, sustainable way? Book a free, no obligation strategy call with one of our investment experts today!

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