The majority of investors who enter the Buy to Let market for the first time do so with the intention of building a substantial property portfolio over the next five years or more but they actually end up purchasing just one property.
Why is this?Property investment rents - Are they always what they seem?
When you purchase a Buy to Let property with a developers discount (also known as cheap properties) you do so on the basis of an expected rental return from your property investment. For mortgage purposes this rental return should at the very least cover your monthly mortgage repayments.
However, the achievable rental income is often exagerated by the Developer. An independant expert is required to assess the true rental income on any investment property.
Thus, in cases where the monthly rental income does't meet the developers expectations, investors are left to subsidise the rental income to meet monthly mortgage repayments - a cost many don't consider before purchasing the investment property. This is one key reason why some property investors fail to develop a substantial property portfolio.
Are discount properties really "genuine discounts?"
Some UK developers inflate the gross value of their properties to give the impression a good discount is being obtained. For this reason an independant valuation is always underatken by us to ensure a true discount is being offered.
Over Supply of Discount Properties
Some property companies negotiate huge discount deals with developers securing tens of properties in any one development. This is great for the developer and the property company but bad news for the investor who may have to cover rental voids if they fail to find a tenant soon after completion!
Carpets and Curtains - using buy to let intelligence!
Any property investment isn't complete without curtains and floor coverings. It's obvious really but often overlooked by aspiring property portfolio investors. This is just one example of the simple pitfalls that The Rutland Partnership will help you to avoid, delivering intelligent property investment advice, prior to purchase of any property investment, either in the UK or overseas.
Confusing Terms
The terms used by many property investment companies are often confusing. Did you know that Buy to Let investment property is also known as No Money Down property, Cheap Property and Discount Property? This in itself can be confusing as 'No Money Down Property' may imply that you don't have to put anything down to secure a property. The term'Cheap Property' or 'Cheap Properties' can be applied to properties with a worth of £500,000, however, it isn't the price that is referred to, but the fact that the property is available as a discount property at a discounted rate. The term can also be used to mean that the property is in fact 'Cheap Property', which is also used for less expensive cheaper discounted investment properties. Confused....? Well its good to remember that whatever you're looking for, if its an investment property that you require, you simply need to know that its a genuine discounted property and forget about the use of terms such as No Money Down, Cheap Properties, or any other such term!
The Rutland Partnership Mission
The Rutland Partnership ensures that all properties secured by us have a genuine builder discount and realistic rental returns. We ensure all our investors are fully briefed in all aspects of the deal to enable them to complete with minimum fuss and costs. We are committed to minimising costs and other time related pressures that can go with property investing.
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