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Archive for August, 2009

Who Invests in Buy to Let Property?

August 25, 2009

Gone are the days when only the wealthiest of investors were holding a property portfolio, even those with only a couple of houses are also very actively investing in the property market. People even cover their mortgage interest payments with their rental income, and to increase their net worth through the rise in the capital value of the properties.

However, whether you are a small investor or are managing a healthy portfolio, the rules of the game apply to you in the same way in any case. You are targeting a market when you invest in the buy to let properties, so research your market.

You must know as an investor what people want, and what is it that they look for in the properties when you are offering your property for rental. But the market is certainly not for the impatient one, and those who are looking to make millions in a few weeks will be pretty disappointed to learn that, just like any other business, buy to let property requires a decent amount of dedication and hard work too.

Be patient with your investment and you will eventually see for yourself the benefits of investing in buy-to-let markets.

Read lots and lots until you are confident that you have every angle of property investment covered. Knowledge is power and learning the right investment tactics from the right resources will be the difference between success and failure.

Consult experts and network as much as you can to learn more. That does not mean that you end up throwing money at expensive rip off courses, just do your research to find the right courses.

Buy to let property is for everyone and making money from it is as easy as it appears, as long as you are well versed with the right information about property investing before dipping your toe in the water

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Buy to let Property

August 23, 2009

Demand for rental property is as high as ever. As more students get enrolled in the universities and waves of immigrants continue to set foot on the British soil, people are looking to rent more and more houses everyday, since it is not easy to buy property. The buy-to-let market has been hot ever since it all started in 1996.

 

The buy-to-let market can really help you make some lucrative profits in the longer run if you address the right target market, but it is not as easy as it seems. Targeting the right market and making the right moves can really bring you the profits that the buy to let property investments are known for.

Why Invest in Buy-to-Let Properties?

Buy-to-let has proved to be one of the most reliable shapes of real estate investments, especially since the last decade, which you can pursue to earn more on your wealth. There are a few good reasons why the property market has been able to hold the attention of investors towards itself. Primarily, investment in properties is very safe, and is much safer than the kind of market fluctuations which can shake the stock market, so it is a good portfolio diversification option alongside your investment in stocks. Landlords also like to see their investment in a more tangible shape than shares.

 

If you are thinking about the declining property prices of properties these days, then the investors in real estate only worry if they are looking to flip properties. If the prices are low today, they will rise in the future. Besides, investing in a buy-to-let property keeps on bringing in the income, and the investor is usually pretty happy with the return.

 

If you are a smart investor, then you should really be eyeing the rental property market in the UK keenly. Economy in general may be in recession, but other socioeconomic factors in the country, such as increased immigrant influx and a consequent increase in population, and the climbing rate of divorces, you can always find more and more people looking for rented houses. You can be very much sure of university students looking for a place to rent, so if you target your property to them at the right time, the returns will flow in

 

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Investing with A Property Coach

August 18, 2009

If you are in the habit of watching sports, then you must have observed that a change in the coaching staff can massively affect the results of a team. Alex Ferguson may be a classic example in the sport of football; the team he has worked with as a coach (manager), he has done wonders. And most often than not, it is the coach that gets the axe when the team is not performing well.

 

It is a general rule that everything that offers high returns involves high level of risk of failure, and the same holds true for the property market. As an investor you need to be aware of the limits so that you stay away from any losses, while there is no margin whatsoever for repeating the same mistakes over and over again in the property market. Therefore, if you want to have success in property, you need to formulate and execute you plans with perfection without ever repeating your mistakes.

 

In order to be successful as an investor, you must make the habit of taking well calculated and smart decisions. You can attain this goal by hiring the services of a property coach; once you get an expert opinion on each and every move you make, it will create a process of check and balance. An expert will help you realize your mistakes, which is the first step towards rectifying your errors. You will also not get the chance of passing the blame on to someone else, when you are responsible for the mistake. As is frequently remarked by football experts, that winning is a habit but so can be losing. It is up to you to decide which habit you want to develop. No matter how many property articles or books you read, once you get a coach on your back you will instantly develop the winning habit.

 

A property coach or expert helps you draw out a sound plan and come up with new ideas for carrying on the property business. But just like in football, property investment success only depends on you executing those plans to the best of your abilities. If you have a property coach, he will not rest until he sees you work as hard as is required. With the help of a property coach, you will never lose sight of your goals and he would always be there when you need to ask him complex questions. Moreover, a coach can also get you going when you are down through his motivation skills.

 

While picking a property coach that can help you become successful, it is important to hire one who has done it all and has been through all the levels of property business as an investor. Choosing a property trained coach who has never been in the thick of the action will not be very effective. It is always useful if your coach owns some local properties, as it ensures that he is easily accessible whenever you need to ask his advice. It is also important to have a look at the attitude of your coach towards your success. Is he really bothered about your future in property market? He must exhibit that he cares that you succeed irrespective of the fact that he gets his fees from you or not.

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Investing in a Declining Property Market

August 18, 2009

There has been much talk about entering a property market that has been going through a slump for quite some time. But the problem arises when there are not enough people who are willing to put in sufficient capital which is required to carry on in a slack market. If you are planning to invest in a declining property market, then you need to read the following five facts:

 

  • To start with avoid paying prices which the buyers ask. Most of the buyers are usually asking for prices in and around the amount of their mortgage, but the fact is that in a property market constantly showing a downward trend, this is not the way to go for them. If you have plans to acquire a particular property, then get down assessing it thoroughly and if it seems to be a potentially profitable investment for the months to come, then get going with your offer. In a downward property market, it is not unusual to ask for a discount for up to 20 percent. And if the seller refuses your offer, you got nothing to lose as you can look for other properties, while the seller will realize sooner rather than later that his price is simply too high for the market.
  • You need to focus on location before making any investments in the property market. In order to make the smart investment you need to plan and give special attention to the location of your property.
  • You need to be a little patient, as making an investment in a downward property market is a long-term investment. You should waive off any thoughts of making instant profits, but eventually, when the market goes up again, you will be among the leaders if you were wise enough to make the right investments and stick with them.
  • When entering a declining property market, you should not entertain any ideas of flipping houses, because it does not happen. Only a few lucky investors are able to make a successful flip, and quickly flipping is dying out. You would be better off investing in many properties and making repairs when necessary to them so that your chances of making pounds are increased.

Becoming a landlord is currently the order of the day in the property market. There are millions of people who have lost their houses for one reason or the other, but ultimately they have to live somewhere even if they have to rent a house. Being a landlord is very profitable as long as you are making the right property investment with good rental yields

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