Most Important Property Tips

Posted by Angela Farrell on November 14, 2008

“The 14 Most Important Things You Need to Know About Successful Property Investing in 2009”

1) Yield is king, nothing has changed [though most forgot in 2007]

2) Asking prices more irrelevant than ever, decide what you think property is worth based on rental

3) Focus on sourcing through estate agents: they are more motivated than ever and will bring you some of the best deals

4) Expect bank of England base rate to drop further, maybe to around 1- 2%. But remember they will be back to 5%+ in the future – so buy on this basis

5) Fix as many mortgages as you can for 5-10 years plus once LIBOR has relaxed

6) Mortgage deals will get vastly better as 2009 progresses

7) Focus on finding your areas within your area and don’t get lured out of your patch

Ignore the negative press it will probably be the best year in 20 years to buy

9) Try and pick tenants who work in industries unlikely to be making redundancies

10) Take DSS [Now LHA], it is great as the council will always pay [and sometimes over market rent]

11) Don’t think you can time the absolute bottom of the market because you will likely miss it, demand will increase and you will be paying 10% more immediately

12) Use a variety of mortgage brokers as lending will be tight for a while yet – you only have a small window for some products

13) Don’t expect growth for 24-36 months at the earliest and base your strategy around cashflow

14) Don’t let apparent lack of finance be an excuse: find the deal of the century [every week] and you will find a way [see our section on private finance]

Bonus 15) Enjoy the ride and keep a diary, you will want to tell your kids about 2009 and how crazy it was for buying Property!

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www.progressiveproperty.co.uk