Everybody learns by their mistakes, what did you learn about buying property?

[totallyproperty]

While there is advice aplenty for those looking to buy properties around the world nothing beats good old-fashioned experience. Have you been there, done it and worn the T-shirt? What advice would you give to others looking to buy property, whether experienced or perhaps a first timer.

 

[Kristine]

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. That's what I've learned so far.

 

[totallyproperty]

Hi Kristine

I totally agree - buying a property attracts an array of costs and if you need to sell in the short term you could easily end up substantially out of pocket.

Regards,


Mark

 

[tfrural]

Fazendas a Venda

My suggestion for buying a property Dont belive anybody till finished the deal on any property land or any other thing..."Dont be Fool & Dont belive the Fake".

<snip>

 

[totallyproperty]

I agree - do not bank on any purchase until you have signed on the dotted line and have the keys in your hand.

Do not take your eye off the ball!

 

[totallyproperty]

Hi Aakarmi

Some great tips there. I think the main one I have learned in the past is not to run before you can walk - i.e. don't look at big ventures and big ideas until you have cut your teeth on smaller projects. Make your mistakes on the smaller ventures and get it right for the larger ones.

Regards,


Mark

 

[Mike D]

Hi... and though it may sound obvious and cliche... and if it is cumbersome and far from the most exciting thing to do... compare, compare and compare... I am currently looking to buy... and it´s mental... prices are just insane... sometimes I wonder if it´s worth it.. but then again done the flat sharng thing... (not going back down that road --- and done with landlords waiting until June to fix the radiator)... Any ideas or suggestions of where to look in London... I work close to Farringdon and ideally would like to live closeby... Cheers, Mike

 

[totallyproperty]

I think the trick is to stay cool and wait until that chance of a lifetime appears as it will - whether markets soften, you find someone in need of a quick sale or something just falls into your lap. The most successful investors bide their time and don't chase the market - unless they are ultra confident.

While I don't see a collapse in the UK market, unless the economy picks up dramatically I cannot see it racing ahead at the current rate of growth. Stay with it Mike - I am sure you will get your reward in the short to medium term. Good luck!

Regards,


Mark

 

[Bilbo80]

I'd say do your research. Choose your area carefully and be realistic about what you can afford. Look at as many houses as you can to get an idea of what you can get for your money and what else is available in that market.

 

[Mike D]

I'd say do your research. Choose your area carefully and be realistic about what you can afford. Look at as many houses as you can to get an idea of what you can get for your money and what else is available in that market.

I agree with the "be realistic about what you can afford"... the expenses of buying a house go so much further than the actual cost of the property... there´s all the renovations, fixings, repairs, new furniture, taxes, etc etc etc that too many people step into something they are regretting the minute they receive their first invoices /mortgages bills in the mail box. Nice one mate

 

[totallyproperty]

One helpful note I would recommend is to look at the long-term picture as opposed to the short-term. If you have the potential to make a significant profit in the short to medium term then there is nothing wrong in taking this, but if the long-term situation does not change then you could improve your returns by ignoring short to medium term fluctuations.

 

[totallyproperty]

One more quick tip, do not believe everything you read in the financial press!

When markets are moving higher everybody seems to be positive and then suddenly we start to see the tide turn. Do your own research, use your own gut instinct and do not blindly invest or disinvest in any property market - or indeed any investment market.

 

[AdityaRaghav]

HI all,

Thankyou for such a good post admin. Keen observation helps you find a good property though, you need to search for property via genuine portals, shortlist the properties which you liked. After that visit the places, meet people collect more info.

 

[Cyprus Property Buyer]

What did I learn?
I thought BTL was a numbers game, how wrong I was. Very much a people business so don't just look at the numbers. Tenants will damage your property and refuse to pay the rent. The Magistrate will allow the tenant to pay the arrears at £1 per month over 70 years and then the former tenant will still refuse to pay the £1.
Make realistic assessments for voids, maintenance and bad debts and only proceed if you still have a healthy margin or are sure (which nobody is) that you will see capital growth in the long term. If you are not FULLY covering ALL costs then you will not survive to see the rewards of the long term.

 

[Raizamea Lupage]

Everyone learns from their own mistakes, but it s better when you can learn from somebody who has already made the mistakes and can keep you from making the same mistakes also.