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How To Search For The Best Property Locations

 

If you were to look at 100 properties, you may end up buying one good deal! Property is very much a numbers game. The more you look at, the more familiar you’ll become with your market and the chances of you finding an absolutely amazing deal are greatly enhanced.

As a serious property investor, you should be looking at property every day – if not physically, you should be analysing deals in the local property paper or online. Using the latter method, you will be able to literally analyse hundreds of deals in one sitting. If you’re not already familiar with several locations you might want to invest in, I would recommend you start doing some research.

Call several agents in your area, visit local property websites and check the local paper to help you to familiarise with the market.

Prior to investing even 1 penny of your hard earned cash, you need to verify that there is market for your property for your preferred tenant class. There is little value in buying a property and then deciding whether you can let it out or not.

The best locations for your property will depend on your target tenant. If you want to rent to students then you will need to source a property close to a large University or College. Alternatively, if you want to rent to professional tenants then you will need to provide a house close to a large employer or within easy reach via good transport links.

As a rough rule of thumb, you should always try to purchase properties in ‘up and coming’ areas with good transport links to the local employers. The properties tend to be cheaper here, and with the added benefit of HUGE growth potential. Furthermore, tenants don’t mind living in these areas for slightly lower rents than they would otherwise be charged in more prestigious locations.

When looking for these ‘hot spots’, you should firstly look at locations adjacent to ‘nicer’ areas. Scour the high street of these areas looking for new shops that are opening up, for example Marks and Spencer’s or ‘trendy’ coffee bars.

Place ‘ghost’ adverts in the local paper advertising for a property that you do not yet currently own. If you only receive one phone call for a 4 week slot, then you can safely say that the location is not a tenant hot spot. However, if you receive 20 phone calls a day for a week, you can probably risk a bit of money and buy in this location!

 

 

Learn how to search for the best property locations by claiming Your FREE Limited Edition CD and eBooks Right Now: 

http://www.PropertySuccessFormula.com

Property Success Formula CD Property Success Formula ebook 5 Golden Secrets To Property Success ebook

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How Do I Get A HMO Licence?

 

HMO Properties Houses in Multiple Occupation (HMOs) have received a lot of press attention recently, both good and bad. As a result, people are now either wishing to jump onto the HMO bandwagon, or want nothing to do with them.

If you have any interest in property investment whatsoever, you must familiarise yourself with HMO regulations.

Landlords already running HMOs in England had until 3rd July 2006 to present their applications to their local councils. Any landlord who owns a property that has been let out to sharers may thus be breaking the law if he has not already registered that property.

From 6th April 2006, the Housing Act 2004, has meant that there is a new definition of a House in Multiple Occupation (HMO). Anyone considering a career in property investment in the UK should familiarise themselves with the Housing Act 2004. You can easily download this from the internet.

HMO legislation has been introduced for several reasons:

• To improve the condition of rented housing stock.

• To reduce the number of unscrupulous landlords letting substandard and potentially dangerous property.

• To improve management standards of rented property.

• (Indirectly) To increase revenue for local councils through what is effectively a landlord’s tax.

• (Indirectly) To compile a register of rented property stock.

It is hoped that HMO legislation will result in a much better deal for tenants by removing rogue landlords from the system. However, as with most things, the better landlords will now have to go through additional red tape to provide a similar service to what they have already been providing.

To get a HMO licence you will need to submit a completed application form obtainable from your local council. As part of your application, you will need to include floor plans providing room sizes and an indication of current fire precautions in your property. You will be required to prove the safety of any fire detection system by providing a certificate issued by a suitably qualified engineer.

You will also need to submit a current Gas Safety Certificate. You can obtain this from any Gas Safe (formerly CORGI) registered engineer. An electrical safety inspection will also need to be conducted by a qualified electrician and an electrical safety certificate issued.

If you are providing any electrical appliances, you will need to have a PAT (Portable Appliance Testing) certificate issued by an electrician. This will cover items such as electric kettles and toasters etc.

You will also need to prove that you have suitable management arrangements in place. For example, deposit procedures, tenancy agreements and procedures for dealing with anti-social behaviour.

The final requirement is for you to be a ‘fit and proper’ person, by providing a Criminal Records Bureau (CRB) check. This will need to be dated within the previous six months. Your local authority will inform you if this is required.

 

 

Learn how to get a HMO licence here:

http://www.hmopropertyriches.com/

HMO Property Riches Property Negotiation TacticsProperty Tax Strategies

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Property Investing Is A Real Business!!

 

A lot of people get into property investing thinking that its just about buying houses – you buy a house, develop it and then sell it on. Or you buy a property and then rent it out. And, in return for your efforts, you’ll make a load of cash!

Surely, if life was this simple, everyone would be investing in property. Right?

Before you throw in your job and embark on a lucrative career in property investing, you really need to sit down and try to understand what property investing is really all about. Property investing is a serious business. Treat it as a hobby and you will only ever achieve hobby profits. However, treat it as a business and you’ll get great results.

A successful property investor who buys and deals in property every day will:

• Understand what vital research is required before he offers on any property. This will include a lot of desk research including but not limited to ringing estate agents and letting agents to get the ‘feel’ of any one street in any one area.
• Perform essential calculations to assess the viability of the purchase before even stepping out of the front door to view the property.
• Know exactly which locations to invest in, and which to avoid like the plague.
• Have a system in place to enable him to source and buy property below market value time and time again.
• Know all about clever negotiation strategies that will help him to save literally thousands off any property purchase.
• Understand creative strategies such as options, no money down and cash back deals.
• Know how to invest not just for asset building, but also for cash flow.
• Be able to structure each deal to suit the property sellers situation.
• Understand both buy-to-sell and buy-to-let strategies.
• Know what to do with the property once he’s bought it.
• Have mastered the basics of property ownership and how to be a good landlord so that tenants never leave.
• Will know about property development and how to ensure that jobs get done on time and within budget.
• Know how to create a win-win situation every time.

So next time you think about investing in property, consider the above and start knowing exactly what will be expected of you to succeed. Don’t start investing in property thinking it will be easy money with very little effort.

Property investing will require a lot of hard work and dedication especially from the outset. Educate yourself on the subject and develop a list of like minded friends and mentors whom you can consult when you get stuck.

If you go into property investing knowing the above, there’s a good chance you will succeed. However, if you maintain a casual ‘lets see what happens’ approach you will throw in the towel much sooner than you initially expected, labelling property investing as a waste of time!

 

 

 

Make property your business and claim Your FREE Limited Edition CD and eBooks Right Now: 

http://www.PropertySuccessFormula.com

Property Success Formula CD Property Success Formula ebook 5 Golden Secrets To Property Success ebook

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Plan Your Property Purchase

For any new property that I buy and renovate, I will always make it compliant with any current regulations for that property type in that location. If I am unfamiliar with the location, I will contact the council and ask about minimum requirements. This way, there will be no ambiguity when I come to resell or let the property.

I will do this regardless of whether my intention is to use the property as a House In Multiple Occupation (HMO) or not. For example, I will aim to do the following works as a minimum during any property renovation:

• Install interconnected smoke alarms and heat detectors.

• Install fire doors to kitchens and bedrooms.

• Have the electrical installation checked and upgraded to current standards.

• Ensure gas fittings and appliance meet current safety standards.

This will save me time and money at a later date, especially if I decide to use the property as a HMO.

For any business, ‘Cashflow is King’. Whenever I buy property, I always invest for cashflow. There’s little point in buying a property in a great area for a lot of money, if you’re not making positive cashflow from day 1. Learning how to better manage cashflow can make the difference between your success and failure in business.

It doesn’t matter if you think that your favoured location will generate great capital growth. The question you need to answer is whether you will be able to sustain that capital growth on negative rental returns.

HMOs are a great way to obtain substantial cash flow from your properties. It is not uncommon to achieve up to 300% returns over and beyond single occupancy rentals in high demand locations all over the UK.

Since HMOs provide much needed affordable housing, particularly for younger people, there is a strong market for such accommodation.

A HMO property will not only give you additional cash flow, but you will also benefit from the usual advantages of owning property. For example, you will have good capital growth depending on location and market conditions. Furthermore, it is not always necessary to fill all the rooms to service any finance payments.

If you plan your property purchase carefully, you will be able to grow your portfolio quickly and with minimum effort. By applying some basic rules and understanding current market conditions, investing in property should provide you and your future generations an income for life.

A little bit of knowledge goes a long way:

http://www.hmopropertyriches.com/

HMO Property Riches Property Negotiation TacticsProperty Tax Strategies

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What Is A House In Multiple Occupation (HMO)?

 

Put simply, a House in Multiple Occupation HMO is:

• An entire house or flat that has been let out to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet.

A household is defined as members of the same family living together.

• A house that has been converted into bedsits or other non-self-contained accommodation and that has been let out to three or more tenants who form two or more households and share a kitchen, bathroom or toilet.

(A self-contained unit of accommodation is one which has a kitchen or cooking area, bathroom and toilet inside it for the exclusive use of the household living within the unit)

If the occupiers need to leave the unit to gain access to any one of these amenities then that unit is not self contained.

• A converted house containing one or more flats which are not wholly self-contained and which is occupied by 3 or more tenants who form two or more households.

For a property to be classified as a HMO, it must be used by the tenants as their only or main residence. Properties that are let to students and refugees will be treated as their only or main residence.

If your property falls into any of the above categories, you may need to apply for a HMO licence. In order to find out whether you need to obtain a HMO licence, you must contact your local council and speak to the Environmental Health Officer, who will advise you accordingly.

Every council has their own guidelines for HMO compliance, so the final answer will depend on the size and location of your property. I always advise my clients to call the council before buying a property that they are thinking of converting to HMO usage.

One simple phone call could save you thousands of pounds as you may find that very little is required to prepare your property as a HMO.

Regardless of your property location, you will definitely NEED a HMO licence if your property

1. has three stories or more (including usable basements or attics), and
2. is occupied by five or more people, and
3. those people form two or more households, and
4. the tenants share the kitchen, bathroom or toilet.

If the above applies to you and you don’t have a licence, then I would advise you to contact your local council immediately as you are most certainly breaking the law.

It will cost a neighbour or tenant the price of a phone call to report you, and this could cost you up to £20,000 plus recoverable rent!

Applying for a HMO licence may appear like a lot of work. However, when you’ve gone through the process once, you’ll find it much easier for any subsequent properties that you purchase.

 

 

Increase your property cashflow from HMOs Today:

http://www.hmopropertyriches.com/

 

HMO Property Riches Property Negotiation TacticsProperty Tax Strategies

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Is It Worth Getting a Property Mentor?

"Seek mentors who have done what you desire to do and who have become what you desire to be"

If you speak to any successful person you will find that he has or has had great mentors to get him to where he is today. If you want to become successful in property, I would advise you to find someone you can learn from and who can help you to take that first step. If at all possible, find a mentor you can speak to personally, rather than someone who will only speak to you if you are part of a group in a seminar-style setting.

A mentor will be someone whose work you admire. He will be someone who has achieved what you want to and is in a position to get you where you want to be quickly. A mentor will also have access to a network that you may wish to be part of.

For example, your property mentor will have a team of property finders, solicitors, financiers, surveyors, architects and builders etc who he uses in his daily business. Good professionals often take years to source. However, you could greatly enhance your chances of success by tapping into the same team that your mentor uses.

As a property entrepreneur, I have several mentors who have helped me to achieve quick results that would otherwise have taken me several years to attain.

A good mentor will

  • Coach you
  • Guide you
  • Nurture you
  • Challenge and criticise you to get the best results possible
  • ……and much more until you succeed

So how do I find a mentor?

There are several methods you should be using to find your ideal mentor. I’ve listed a few here:

  • Network

By attending networking events and meeting other successful property investors, you should very quickly be able to pick out a couple of people you think could help you in your property career.

It’s then a question of approaching them and asking them if they offer any mentoring. If they don’t, ask them if you can help them in their business for free in return for some general guidance – this normally works quite well.

 

  • Surf the internet

Use the internet to research existing property entrepreneurs in your area. Again, look for someone who has achieved what you wish to achieve and looks like someone you could work with.

 

  • Ask a friend

If you have any successful property investor friends, you could ask them to guide you. Alternatively, ask them if they have any mentors that they wouldn’t mind you working with.

 

  • Source authors of property books and courses

If there is any book or program that you have bought in the past and learned from, you may want to approach the author and ask him if he offers mentorship. This is a great way to find an established and recognized expert.

Once you have chosen a mentor, you will be spending a lot of time with him so please ensure he is someone you are comfortable working with him. Good communication is essential. Common goals and similar interests will definitely help here.

 

 

Get yourself a Property Mentor here:

http://www.millionairepropertymentor.com/

Millionaire Property Mentorship Programme Millionaire Property Mentorship Programme Manual

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