Let's look at the 2 most important financial principles that will guarantee you become a set and forget property millionaire. The first is leverage. In fact it's the lesser of the two but means that we can use the second much more effectively.
The biggest obstacle that new investors face after some success is the ego trip. Most of the time t begin to get a sense of invincibility, thinking t can buy anything and make money. So t disregard the very principles t followed to get there.
OK, time for a mathematics session so grab your calculator. Unlike buying your own home where a funder will look at the income you earn and assess your ability to repay. A buy to let mortgage works profoundly differently.
I was asked the question the other day by one of my newest portfolio clients about what was meant by the term 'due diligence'.He knew in general terms but he rea
One of the great things about building a portfolio in the UK is that you are not confined to just your income and rent you receive to fund your portfolio. You have access to any number of sources of capital including credit.
This is a simple strategy that allows you to use the same money to buy many houses the only wastage is the costs associated with the purchase.
To me, after many years investing and with dozens of properties in my portfolio, the actual act of investing still revolves around what I like to call the "sleep test". Can you invest in a property and sleep a full uninterrupted night without worrying?
Running a portfolio of properties is relatively easy when you have 1 or 2 properties but once you have more you'll need assistance to track rents, ground rents, service charges, tenancy expirations & mortgage payments. Our free software can help!
This phase of the cycle is an easing of cashflow. Rates begin to drop and this will create a lot more buoyancy in the market. You will notice that each time the rate comes down that your cashflow will ease. Enjoy this extra cashflow, but don't be stupid!
During this phase of the market, you need to stop buying. Completely. This is easier said that done, since the temptation will be enormous to keep investing, but in this phase you MUST stop and begin to gather food for the winter.