Tips for going into the property market with a budget

If you want to get involved in the property market and your finances are limited, you may wonder if you can realistically compete, but in fact most property investors started small, and you’ll be surprised by the deals you can get if you have a decent deposit. The trick is knowing where to look and being ready to put in some hard work to turn the place you buy into something you can rent out for a good amount or sell at a comfortable profit.

Take your time when you’re buying to let, you have a big advantage over most other buyers – you’re not operating on a tight schedule, needing to find somewhere to move to before your current home belongs to someone else. Don’t rush into buying the first thing you see – take as long as you can get away with and wait until you spot a good deal. Great places at low prices do come up, and if you’re ready to pounce when they do, you can get a lot more for your money.

Consider different mortgage deals – There are many different types of mortgage deal out there, including ones specially designed to help first time buy to let buyers. Make sure the deal you get doesn’t restrict your ability to sell at the point where you may wish to do so. If you want to sell, you should be aiming to make back your original deposit plus the value of any mortgage payments made, plus the cost of any work you do, plus 20%. If you rent the property, you should have a margin of 20% on top of your mortgage payments.

Find a good estate agent – A good estate agent can help you a great deal by assisting you in finding appropriate properties and giving you advice about getting the right mortgage, home insurance deal, etc. Belvoir Lincoln, for instance, can help you all the way through from searching for a property to getting it ready for the rental market. They can also help you to manage your tenants and arrange safety inspections to ensure that the property stays in good condition.

Look for a fixer-upper – Most landlords find properties in one of two ways: by looking for sellers who need to dispose of them quickly or by picking up places that have already been foreclosed on. Many properties like this are in poor condition, so it’s important to do your research and have an understanding of what it costs to fix different types of damage – everything from a simple paint job to fitting a new heating system. This will enable you to determine how good a deal really is. Once you’ve developed skills like this, you’ll be able to put them to use in other ways as well.

The next time your family is ready to move, you’ll be able to find a better deal at a lower price, and your business experience will help you to get a good financing deal. You’ll also have the option of buying further investment properties in the long term and watching your property business grow.

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