Have you ever thought of the benefits of a repossessed property? They can be 30% cheaper than the regular price and it means you can have a range of properties in your portfolio in a range of places.
Depending on what you would prefer, all types of property can be repossessed for different reasons, so there is probably a house out there now that you could get for a bargain.
With the majority of repossessed properties being in the North, you’re in luck if you’re a landlord further up the UK. But why are they so cheap?
In a lot of instances, it’s easier for building societies and banks to sell the properties at cheaper prices in order to clear that particular problem from their desk nice and quickly make the most out of a bad situation. This is where you can take advantage.
Unless you’re happy with the one house that you rent out because it’s bringing you some money in on the side, you may want to expand your portfolio and try earning a little more.
You may be thinking that being a landlord is stressful enough at the best of times, but there are specialist companies that work in the field of off-market properties. These properties aren’t normally found through regular retail companies because they don’t suit the majority of client criteria.
By using a company such as Fruitful Property Investment, you leave all of the digging around to the experts. These companies get their business purely from these hidden gems and advertise them to you. It’s not just old properties either, you could get yourself a quick cheap sale on a new build because it’s easier for the estate agency to get it out of their hands.
You do have to be careful. Don’t go diving in because the property has a cheap price tag. There may be underlying factors that cost more than the house would have been worth to repair. Check if the building is structurally safe or if has had past problems such as damp and mould which can be easily covered for a viewing. You can read, What to Check When Viewing a House guide for more details.
Once you have your perfect property, you just have to brush up on your landlord skills. There are ways to make sure you’re earning a nice profit while paying off the mortgage, simply increase the rent and decrease your mortgage payments, this way you’re earning a steady profit until the mortgage is fully paid off.
Before bumping up the price of the rent too quick, make sure you research the rent prices in the surrounding areas. You don’t want your reputation to be damaged because you’re asking for too much. If you take to slow, by the time you’ve paid of your mortgage you will be earning 70% profit with reliable tenants after maintenance costs.
It’s a good idea to start looking for potential tenants while all of this is going on too. You don’t want to get the property and have it unoccupied for too long. If you’ve decided that you want to renovate the property before inviting in new tenants, you can get specialist Renovation and Unoccupied Insurance with UKinsuranceNET.
From this moment on the skies the limit. Once you have the experience you can start purchasing more and more properties and build yourself a very strong portfolio, or you can use cheaper repossessed property to increase your already existing portfolio.
Perhaps you should consider looking into Repossessed property and knocking a possible 30% of the price. The perfect way to either start or expand your portfolio.