Advice on step by step guide to starting a buy to let property porfolio?

For years now, Ive been very interested in Property development & buy to let. always watching the various programs on the BBC and seeing people make (sometimes) upto 40k on the value a recently purchased house at auction after spending sometimes as little as 1month investing in the property (New kitchens, bathrooms revamp etc) and then they manage to rent it out covering the mortgage as so the house is virtually paying for itself!

firstly what you have to remember is that a lot of these TV shows were done when the property market was booming, in some instances properties increased in value without having any work done, with the property market is the downturn that it is now this is becoming more difficult.

If you wish to have buy to let you have 2 choices either you buy a house outright or you choose a buy to let mortgage which is different to a regular mortgage.

before buying do not forget to get a surveyor to go over your property do see if there are any problems with damage, subsidance, damp, a big mistake is that some people will not bother with this as they think that the expense is not worth it but if there is a problem with the property once you have bought it this could cost you thousands of pounds extra.

your biggest thing is your budget, you have to set out a certain amount for each thing, i,e decorating, plumbing, builders, mortgage fees, land fees, solicitors and always have some put aside for contigency (approx 20%) incase any think does crop up, depending on what kind of property you are renovating will decide how much money you need, if its a quick spruce up, then your budget wont need to be that large, but if your buying a delapitated property obviuosly you will need more.

shop around for quotes if you need builders as these will be your godsend if you can get good ones ask around if any friends or family know any they can recommend.

Find out about the area is it good for schools, rail and bus transport and then decide what group of people you will aim the property at, obviously families are going to need different requirements to say a old couple of single person would, remember DON’T get carried away with your own personal style, just because you think that some thing looks “funky and groovey” does not mean your buyer will, and this could infact put off potential buyers.so have fun decorating but keep lines clean and colours fairly neutral, it does not have to be all beige you can add a bit of colour, with cushions, curtains and bedspreads, rather than illuminous green walls.

when you have finished your property you then need to find an estate agent to sell it, my advice would be to get 3 quotes from different estage agents, they will give you quotes but remember if you do put your property on the market for the highest quote, it may sell but if not then it may well be that you will have to reduce your asking price.

would i rush into the next job, personally no some do i mean there is nothing wrong with having a look around for your next property, personally i would say if its your first development wait until you have finished it then decide if property devleopment is a good move not everyone thinks so, they realise its not a quick and easy way to make money.

just remember for sucessful property development stick to your budget, try and be on hand as much as possible and remember your the one in charge

WoW Auction House Tips – Using Auctioneer

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