The most common mistakes in buy-to-let

Mistakes in buy-to-let can be extremely costly, and we have often seen unwary investors fall into a trap due to their lack of experience.

Mistakes we have seen include:

• lack of research leading to investors paying too high a purchase price
• investors overestimating gross rental income. It is essential to gain a knowledge of the local rental market
• investors overestimating net rental income. Investors should not forget to factor in costs such as letting fees, insurance, maintenance, and furnishings
• poor negotiating - it is easy for inexperienced buyers to overpay fees and costs without negotiating for a better deal
• a lack of contingency for interest rate and rental market fluctuation
• thinking like a homeowner, not a property investor.

It is vital to remember that a property investor should have a very different attitude to a private homeowner.

For example, the media are currently talking about the rise in property prices slowing down, or even the possibility of a market crash. For private homeowners looking to sell their property, this is not good news.

But for property investors this is very good news. There are always bargains to be found in the property market, but when the market slows and people are made wary by news stories of a price crash, the likelihood of finding real bargains gets even better. Basically, private homeowners benefit from a seller's market, but for a property investor, a buyer's market is preferable. And at the moment, it looks like the market may be swinging towards favouring the buyer for the first time in over ten years.

If you want to invest in buy-to-let, but are concerned that your inexperience may lead to expensive mistakes, make use of our vast knowledge and expertise in this market, as well as our broad base of useful contacts.

Contact us to find out more about how we can help you build a successful property investment portfolio that can make a big change to your life.