Buyers Guide
Getting a mortgage
Talk to either a mortgage broker or bank and get advice on what you can afford, as without knowing your budget you will not know whether you can purchase a property.
Best area to live in
Now you know how much you can spend, you must decide on which areas you would like to buy in. We would advise on taking multiple trips to different areas at different times of the day, to ensure an area is right for you. Be sure to always think of your commuting time and whether you need to be inside a catchment area of a school.
What you need
Decide on what you need from a property and see if your preferred areas offer this. If you need a three-bedroom house, however you can only afford a two-bedroom house in your favourite area, make the decision of whether you can make such a large compromise and possibly consider a new area. However always remember that you can usually extend a property, so if a house has potential, don’t immediately rule it out.
Searching for a property
Now start searching... Call the local estate agents and register your details. You will need to explain what you are looking for in a property and always make sure that if you have any specific needs, always tell the agents immediately as to not waste anyone’s time i.e. minimum number of bedrooms, whether you need a garage, or if you need to be within certain proximities of travel links and schools. Giving an estate agent too much information of what you need is never a bad thing and it will only help you find what you are looking for.
Viewings
So you’ve seen a few properties you like and decided to book some viewings. Go into every property with an open mind and imagine what it could be. Forget the colour of the carpets and walls, look past it and see if the size and area work. Cosmetic changes can always be made. Always be transparent with the estate agents as it will only help you. If you don’t like a house you have viewed, always tell them why. If you don’t they will never be able to know exactly what you want. Plus, every seller appreciates feedback!
Solicitors
Use this time to start obtaining solicitor quotes, as solicitor details will be one of the first things required when getting an offer agreed. Quotes can sometimes take a week to come back.
How much should I offer on a property?
Now you’ve seen a house you like and want to make an offer. Before committing to a figure, check with your bank or mortgage broker to make sure that nothing has changed with your loan. Mortgage rates and lending criteria’s can always change, so ensure you are on top of your mortgage before making an offer. How much should I offer on a property? This all depends on you! Each house is individually priced and roads can vary, so you really need to do research and try to trust what the estate agent says. Obviously if there are similar properties at less money, always ask the agent what the difference is, as some roads may differ in price by huge amounts!
Buying a property
Now your offer is agreed you will have to appoint a solicitor. You will usually have to give the estate agent your solicitors details before they take a property off the market, so make sure that you have them ready. Usually your solicitor and bank/mortgage broker will work in sync, so make sure that everyone is prepped on you making an offer so they can get the ball rolling! This process can take between 6-10 weeks and depends on how fast the solicitor move and which lender you use! Sometimes this can be longer when chains are involved!
Buyers Guide
Buy to Let Guide
Buying an Investment Property
Buying an investment property can be a daunting experience, as this will most likely be your largest investment. Making sure you purchase at the correct time, in the right area will determine whether or not you achieve good returns on your investment. Before purchasing a buy to let property you should do sufficient research to ensure that you are making the right decision with your money and ensure that you search for an area that has a positive buy to let market, as the last thing you want is a property that struggles to let, or even worse, costs you money.
Now, if you have decided that buy to let is for you then follow these steps:
How Will You Finance a Buy to Let
There are multiple ways to finance a buy to let property and choosing the best option for you really depends on your personal finances. Some Landlords have the ability to purchase outright, however most choose to get a "Buy to Let Mortgage" allowing a much smaller cash output on day one. Usually lenders expect you to place a 25% deposit before they will lend, but should you need advice on the matter, let us introduce you to our independent mortgage broker and see what options are available to you.
Choosing The Best Area
Finding an area to invest in can be tough and you should spend most of your time researching different areas to ensure you invest safely. What should we do?
Start looking at different towns on Rightmove and compare purchase prices to rents, as this will determine your overall yield. Also look to see properties are letting and check accessibility to schools, shops and transport, as these will be your key points on whether an area is a safe investment. You need to decide on whether you invest locally or look to a new area where house prices are cheaper. If you decide to look out of the area you need to keep in mind that you may have to travel to the property to resolve issues and keeping it semi-local may be a wise move and an option most prefer.
The Right Property
Do I buy a house or flat? Deciding what is best really depends on the area, as some areas have a huge amount of apartments and others are saturated with houses. Ensuring you choose the correct type of property will determine your overall return from your investment.
How many bedrooms? You now need to look online and do some research into how many 1,2 or 3 bedroom properties are available at any-one time and possibly watch a handful to get an idea on how quickly different sized properties let. This is also very important, as having a property where there is lots of competition can lower your yield and give you longer void periods, so possibly count the numbers of one and two bedroom properties available and monitor which let quicker on a monthly basis. If you are looking to invest in our area, we can always assist with this information and are more than happy to do so.
The Investment
The key point when deciding whether a property is right for you should be the return you are making. You should look at the difference in rental figures, as there may be a small difference in rent between 1 & 2 bedroom properties; however the difference in purchase prices may be substantial. Example: If one bedroom properties let for £1,000-£1,050pcm (per calendar month) and two bedroom properties let for £1,100-£1,150pcm, then you are only benefiting from £50-£150pcm. Now look at the sale prices – if one bedroom properties sell for £250,000 and two bedrooms sell for £325,000, is £100pcm worth an extra investment of £75,000? Probably not, as the return on the extra £75,000 at a rental amount of £100pcm is roughly 0.16% per year. This extra £75,000 could be used as another deposit and potentially offer return of 4-5%.
Always remember to purchase a buy to let with your head and not your heart, as you will not be living here and it should be looked at as a business that gives you the best returns.
