Tuesday 27 March 2018
This is the kind of property you need to be looking for NOW!
Not a pretty picture is it?
But let's face it, if you've been reading any of my articles in the past few years you will know that BUY TO LET IS DEAD anyway... No, not really, it's alive and kicking. Only if you do it right though, this isn't amateur hour anymore. You can't be lazy. You can't just buy a new build property and wait for it to appreciate because prices are rising 15% per year. You can't expect tenants to turn up and pay top dollar for your bland new build because guess what? Every other T, D and H has bought a flat in that same development to do exactly the same! You are now in a race to the bottom. Who can take the lowest yield will win. A race I am not interested in. And here's why you shouldn't be either.... it just doesn't work for buy to let any more. Buy one to live in, they're lovely, go on. But don't rent them out and expect great returns. Far from it...
So how do you make buy to let work in this day and age? You need to ADD VALUE. If you are not ADDING VALUE and differentiating you may as well pack your bags and go home because property investing in 2018 is NOT FOR YOU. You have to be adding value. How do you add value? Buy something rubbish and make it beautiful. More on numbers later, but if this is the first time you are reading my blog then do head over to the website and read a few articles. Have a look at some YouTube videos. You will start to understand. You need to be buying cheap and selling high. In between is where you make your margin. People sell properties cheap because they can't be bothered. Time is money they say. Well you are an astute property investor so your time has to go into adding value. And that doesn't mean picking up the tools yourself. It means finding the right people to to just that for you.
The above picture is of a property I went to see the other day. LOOK AT THIS OPPORTUNITY to add value! People want an easy life so they buy new builds to live in - they don't have time or expertise to be dealing with builders and the like. That's where I come in! I have helped many investors source, refurbish, dress, and then either sell or let the property. 15 years of experience is for hire. The latest project gave my investor a profit of £40,000 in 6 months with a £95,000 investment. That's pretty good! Go on, have a look at those YouTube videos to see some of my projects as well as ones that I've done for investors.
Here's a sneaky little video, I can't begin to tell you what a beauty this property is! It's literally crumbling to pieces!! 😍😍😍
So what do you need to do? You need be buying cheap(er) property. And that doesn't mean going out there and overpaying for a wreck. Rule of thumb is that you should be able to add £2-3 worth of value for every £1 spent on improvement works. This particular property will be secured for £250,000. I will spend £50,000. It will be worth £400,000. Bear in mind I've budgeted for lease extension, the actual building works are likely to be around £35,000, so my "rule of thumb" holds true. Start with the end in mind. Work backwards. Take the "done up" value and start subtracting your costs in order to work out what you're going to pay.
There, I've said it. Now go invest. Properly and profitably. Don't expect the same results with what you were doing 10 years ago. You need to adapt, and you profit handsomely from doing so.
If you need help finding an awesome investment opportunity then get in touch. If you are not on my radar I can't help you. You need to take the first step. I have a limited amount of money so I can only buy so many great properties. I work for other investors all the time as they like to benefit from my knowledge and expertise; I happily part my knowledge, but do reach out.
Come and meet up in person at the Clapham Property Meet or drop me a line on a social platform of your choice. I speak perfect English so telephone is also an option if you prefer: 020 3637 4474.
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