Property Buying Tips For Raw Beginners

property investmentAs recently stated in The Financial Times and Forbes Magazine…”now is the time to invest in property!”

House prices are at an all time low in many areas, and experts are predicting that the market is about to rise sharply once again. This creates a huge opportunity for the smart investor, as there is no doubt going to be many millionaires created over the next 5 years.

Don’t miss out on the upcoming boom times. Here are a few property tips to help even the rawest of beginners get started.

Get the cash

Once you find the right property it’s important to pounce quickly to avoid disappointment. Most areas have a lot of hungry buyers, which means acting fast is key. Don’t get beat by the competition.

One way to raise fast cash to get your foot on the property ladder is through bridge loans and secured personal loans. Just make sure you know what you are doing, and don’t borrow more than you can afford to repay.

Learn negotiation skills

One of the essential rules of successful property buying is “maximum value.” In a nutshell, this means you should learn the art of negotiation, so you are able to get the lowest price possible without insulting the buyer or turning them away from the deal. Check out some books about negotiation on Amazon or at your local library.

Bad credit = no problem

Unfortunately, there are millions of Americans who are suffering at the hands of bad credit right now. For many people, they see this as a major obstacle in their efforts to get financed for their first property, and while it can present a few challenges, that doesn’t mean it should mean the end of the road.

As mentioned earlier, you could explore bridge loans and secured personal loans to overcome the bad credit hump. Also, there are a number of “unconventional” mortgage lenders appearing on the market, who specialize in lending money to people with a less than perfect financial background.

Ultimately the message is this…if you really want get your foot on the property investment ladder you can, just don’t give up and eventually you will find a solution.

Leave your emotions at the door

Property investing is a business not a side hobby. For this reason, it’s important to leave your emotions at the door, which means buying with your head and not your heart.

At the end of the day, it’s easy to fall in love with a particular property, but is it really a good investment? The world is littered with failed property buyers who purchased on emotion and then took a huge loss. Don’t become one of them.

Make Money by Renting to Students

College student femaleIf you live close to a college or university, then you can make money by renting to students. Most landlords are nervous about taking on students as tenants, mainly due to the stories of wild parties, late rent payments, and property damage.

While there are some students that you wouldn’t want as tenants, the truth of the matter is that the vast majority of students out there are reliable and trustworthy.

With this in mind, here are some of out best tips if you have decided to make money by renting to students…

Get insurance

If you are buying a property to rent out to students, then you will definitely need insurance. At the end of the day, even when you have good tenants, you should still give yourself the maximum amount of protection possible.

Fortunately, buy to let landlord insurance is very easy to find, which means you won’t have any problems locating an affordable deal.

Get a co-signer

Another way to protect yourself when renting to students is to get a co-signer. For example, you could get the student’s parents to co-sign the rental lease, which means if anything goes wrong or the tenant leaves the property without paying rent, then you will still be paid what you are owed.

Go online

The majority of students now like to make their payments online. For this reason, you should set up a system so they can pay their rent online, instead of you having to go round to collect.

Ideally, these payments should be automatic, so they reach your bank account like clockwork on the same date each month.

Look for mature students

Not all students are party animals who enjoy throwing furniture out of windows. In fact, mature students often make up around 10 to 15 percent of a college or university, which means there will be plenty of them looking to rent accommodation. Tap into this market to find reliable tenants.

Always check references

Before renting to anyone, you should always check references. Ideally, this should be from previous landlords, but if this is the first time the student has been a tenant, then they will have to provide references from an employer or teacher.

Never rent a room or apartment to a student who can’t provide any references at all.

Conclusion

No matter if you want to earn a little bit of income on the side, or you want to replace your full time job, you can make money by renting to students.

Buy to Let Mortgages – 7 Factors to Keep in Mind

houseIf you are looking to purchase property to rent out, then you may have to apply for a buy to let mortgage. This is actually more complicated than it seems, as there are many potential pitfalls that could hinder your progress.

Here are 7 factors to keep in mind when applying for buy to let mortgages.

Look for a good broker

Hiring a mortgage broker will save you a lot of time and energy. For this reason, make sure you look for a good broker in your local area.

For example, if you reside in Maryland, then find a site that compares the best mortgage brokers in maryland so you can narrow down your search.

Proceed with caution

At the end of the day, buy to let mortgages can be very risky. If you make a mistake and get out of your depth, then it’s all too easy to find yourself in financial trouble. Proceed with caution and make sure you know your numbers.

Location is key

You want to find a good location with cheap property prices. This is the key to being accepted for a buy to let mortgage without any problems at all, and then getting tenants for your property almost immediately. Spend the time researching locations and property prices.

Have a budget

There are many different expenses when you buy a new house. Not only will you have the mortgage repayments, but there are also costs such as maintaining the property, insurance, and tax. Make sure you factor all of these costs into your budget.

Letting agent fees

As well as the above expenses, if you plan on using a letting company to rent out your property, then you should also factor in letting agent fees. These don’t usually come cheap, and in some cases can even get as high as 20%.

Shop around for a buy to let mortgage

At the end of the day, the most important thing about a buy to let mortgage is the interest rates. For this reason, you should definitely shop around and compare different lenders, so you have the best possible chance of getting the lowest rates.

Don’t let your heart rule your head

Finally, it’s often tempting to purchase a property that you personally like, despite there being obvious flaws. Remember, the property is not for you to live in, the goal is to rent it out. Therefore, you should avoid letting your heart rule your head when looking for houses to buy.

Danny Spalding produced the post.