2 laws of buy to let purchasing
I have only two laws when purchasing buy to let property the rest are simply principles that I generally adhere to because they work for me.
Laws are the foundation of building property successfully. If you break the laws of property you won't go to jail but it will generally cost you money and sometimes if you really break the laws it will cost you a lot of money. So let's jump straight into the first.
1st law - Always buy below value.
Let me start by contradicting this law. Investing in property is a long term job so it really doesn't matter if you pay over the odds for a property. Given enough time you will make money. BUT! (and I love that word) but why would you pay full price if you can pay below market. Buying below market also means that you have greater flexibility and a quicker return.
Working with a property club like ours will give you access to below market value property. Even if its initial value may be over the odds the net result will be below value.
2nd law - The property must be tenantable.
This is fundamental as even if you pay over the odds this will affect your capital return but if you cannot get a tenant you will need to pay for the mortgage. This could seriously affect your cashflow and could lead to losing the property.
Of the two laws the second is by far the most important and dangerous if you do not follow it.
The section in my book The 3+1 Plan will explain in detail how you can easily achieve both of these laws.
Live with passion,