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A Property Investor Checklist - Novice Landlords and Property Investors Advice

PROPERTY INVESTMENT CHECKLIST

It is critical that landlords  are clear what they are getting into before making a costly property investment mistake.
 
Here's a checklist that might help new landlords making a new property investment.
 
  1. Property investment has always been a great long-term investment but understand there are risks and the value of property can go down as well as up.
  2. Landlords should generally avoid investment clubs and certainly paying large membership fees
  3. A landlord should remember that buying an investment property is not like buying a home. Investors should focus on the likely returns from the investment when deciding on which one to buy.
  4. An investor should carry out a full investment appraisal and calculate their investment property returns.
  5. Landlords need to be clear about what type of tenants they want to attract, identyfing their customer, before starting a property search.
  6. Consider all the potential avenues to tracking down a property, be pro-active and use the latest internet sites to obtain information and details of potential properties.
  7. Landlords should consider buying a BMV property. BMV properties can be found at property auctions. Landlords need to be careful that they are not caught out by the provisions of the 1986 Insolvency Act when buying a BMV property.
  8. Landlords buying off plan should ensure that they are really getting a discount if they have been promised one by the developer. The best way to do this is to check out the local property information to find out if the investment property bargain that they have been made to believe.
  9. Property investors need to have decided on what type and period of property to buy. This is going to be one that appeals to the needs of the type of tenant they are targeting and also be able to achieve a landlords long-term investment returns.
  10. Once a landlord has found a potential investment property they need to negotiate hard to secure a good deal. Remember the adage that a property investor makes their profit when they buy not when they sell. Always view as many potential investment properties as possible and put in low offers for any that might meet a landlord’s investment criteria. That way one or two might be accepted and a landlord can then make their ultimate investment decisions based on these offers.
  11. A landlord should ensure that they obtain the best buy-to-let mortgage advice and products to ensure that they cut financing costs to the minimum for the duration of the investment. This generally means avoiding expensive one off charges and fees and ensuring that landlords source buy-to-let mortgages with the lowest APR (Average Percentage Rate).
  12. A landlord should ensure that they understand fully what they need to do to let out their investment property and also the responsibilities they have in letting out their property and the regulations that govern the letting of residential property.
  13. Landlords employ all the ways that they can to cut their costs in order to maximise their returns. These include managing their property themselves and also ensuring where possible that the investment property remains let thereby avoiding the curse of the rental void!
  14. One of the key ways a landlord can maximise their returns is to find techniques that minimise the amount of tax they pay on their investment property.
  15. Finally a property investor should always remember the 3 PILLARS OF BUY-TO-LET if they are going to end up with an investment that will maximum their returns and meet their long-term investment goals.
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Comments (1)

Values
I am trying to fill in the Value of a property I have purchased.

Please can you let me know how I do this and do I have to put minuses in?

For example
If I have purchase a property for £150,000 and my legal fees are £2000, stamp is £1,500 and I have a mortgage of £100,000. I have now spent £20,000 on it and the property is now worth £180,000.
What should my net value, net costs and net profit be showing as?
How do I show this in the Values screen.
Regards
Dionne
#1 - Dionne Blair - 07/05/2015 - 20:37
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FORMS FOR LETTING PROPERTY

FREE TENANCY AGREEMENT (AST)
FREE SECTION 213 NOTICE
FREE PROPERTY INVENTORY
FREE SECTION 21 NOTICE
FREE SECTION 8 NOTICE
FREE TENANCY GUARANTOR FORMS
SERVING NOTICE

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GENERAL SAFETY
GAS SAFETY
ELECTRICAL SAFETY
FURNITURE AND FURNISHINGS
FIRE SAFETY
TV LICENCES
HMO (HOUSE IN MULTIPLE OCCUPATION)
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ENERGY PERFORMANCE CERTIFICATES
COMMUNAL HEATING REGULATIONS

INVESTING IN BTL PROPERTY

A GUIDE FOR NEW LANDLORDS
WHICH PERIOD OF PROPERTY
CALCULATING RETURNS
RENTAL YIELDS
FINDING PROPERTY
SELECTION STRATEGY
INVESTMENT CHECKLIST
PROPERTY AUCTIONS
BMV PROPERTY
BUYING OFF PLAN
BUYING APARTMENTS
BUYING HOUSES
BUYING HMO'S
ALTERNATIVE INVESTMENT
KNOWING THE RISKS
PROPERTY INVESTMENT CLUBS
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MANAGING RENTAL PROPERTY

GIVING NOTICE TO LEAVE
NON - PAYMENT OF RENT
TENANT ABANDONMENT
GETTING YOUR MONEY BACK
THE TENANT WONT MOVE OUT
THE TENANT DOES A BUNK
SQUATTERS
RAISING THE RENT
REDUCING THE RENT
REPAYING THE TENANCY DEPOSIT
FAIR WEAR AND TEAR
MOULD AND CONDENSATION
MAINTENANCE OF A RENTAL PROPERTY
APPLIANCES
LANDLORD ASSOCIATIONS

 

LETTING RENTAL PROPERTY

TEN STEPS TO LETTING
PROPERTY MARKETING
WRITING A LETTING ADVERT
FURNISHING A PROPERTY
LETTING AGENT OR DIY
SELECTING A LETTING AGENT
VETTING TENANTS
TENANTS ON BENEFITS
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LEGISLATION OF LETTING PROPERTY

INTRODUCTION
TENANCY DEPOSIT DISPUTES
ARBITRATION
ALTERNATIVE DISPUTE RESOLUTION
TRIBUNALS
HOUSING ACT APPEAL DISPUTES
THE LANDS TRIBUNAL
RIGHTS OF LIGHT APPLICATION
APPEALS FROM LEASEHOLD VALUATION TRIBUNALS (LVT's)
POSSESSION PROCEEDINGS
POSSESSION - SECTION 8 NOTICE
POSSESSION - SECTION 21 NOTICE
SECTION 21 TIMETABLE AND PROCESS
N5B POSSESSION
POSSESSION ORDERS
GROUNDS FOR POSSESSION
PREPARING FOR A POSSESSION HEARING
LEASEHOLD DISPUTES
HARASSMENT BY LANDLORDS
RENT DISPUTES BETWEEN LANDLORD & TENANT
FAIR RENT (RAC)
MARKET RENT UNDER AST
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