Landlords Love Below Market Properties

PPS HousesSometimes landlord’s need to sell, it’s obviously better to sell when you have equity in the property to finance other purchases. Today might seem like a deflated market to sell in, but you can’t always hang about. When you own properties for ten years or more, the chances are the value will have doubled and if you are on a fixed rate mortgage you could do well to sell and reduce your fixed costs overall. There is more to selling anything than just showing people round though. Houses need to be sold on a practical basis and buyers need to be guided to buy. It’s the same with most things, it’s always a buyer’s market and yet people buy from people and often on gut instinct not necessarily with their head. It makes sense to prepare a house for sale by spending money wisely to make the place look nice. It’s common practice to change light switches and plug sockets, brighten the place with fresh paint and new blinds and even the odd bit of new furnishing to make the place more inviting. Many investors are in the refurbishment business where they take on rough properties to improve and make money from. You don’t necessarily want your property to be a target for these people even if you have had it and earned good money from it for many years.

Landlords really want properties that are going to cost them the least in terms of maintenance and repairs so that their return is greater over the long run. Investors generally try to make the most amount of money in the shortest space of time. Landlord investors look to buy properties for the long term. Improve them over the years with programmed spending so the rent pays for the majority of the works and then the increased rents over time builds a bigger return as time goes on and the capital value of the property grows at the same time. Thereby when the time comes for them to retire or sell for any reason the property is at its optimum look and potential return. This could be combined with paid down capital, in which case the return on the sale would be greater or if there has been some refinancing along the way, the money being drawn out of the property should have been more than a house without regular attention.

tenancy contractWe were showing ourselves off over the last two days at the Landlord and Letting Show at Bolton’s Reebok Stadium. There wasn’t a massive turnout but we were certainly ran off our feet with people interested to hear what we do and how. Whenever an event like this comes up there is always a mixed bag of people attending and yet when you take the overall view, there are more people struggling to make money than those that actually get it right. It’s quite bizarre how fickle people can be; they go to all the trouble of going to events and then often miss the best potentials or opportunities there. It can be the same with the stall holders too. They spend the money to demonstrate their business and then spend all the time moaning and looking glum because no one is speaking to them. With all things we have to be proactive if we want to achieve something. By day two we had it to a fine art of capturing virtually every person that passed simply by asking how we could serve to help them best. It’s very much the same when we show houses for rental and particularly when we are selling. People need to be shown the benefits of everything not be expected to know or see the obvious for themselves.

Even when it comes to self-promotion we have to expect to give our all attention to be seen to be doing what we do, otherwise new customers will only come from recommendation which whilst wonderful and the cheapest most reliable way of finding clients, it generally has a long lead in time from one to another and we all need continuity to keep our businesses working. When you show off your ability the right way, you usually get to hear about so many cases getting it wrong and property is one of the most prolific for people losing money as well as making it. The market may have started moving upwards again if all the reports are to be believed, but that doesn’t mean that properties will sell themselves. There are still plenty out there and plenty of good deals coming through all the while. Opportunities have to be ceased and we see many people with decision problems who need a little guidance which we offer for free rather than all the learning they attempt to get from spending money they can’t afford on courses that they won’t use.Without something tangible to show off, don’t waste people’s valuable time trying to sell them something under false pretences.

Always show off what you know and give people value for money.

Written by:
Lionel Palatine – He is a regular networker and a speaker at events as well as being a property author and adviser. He joint ventures deals and shows people how to buy property for low cost which are inclusive of all fees and deposits.

You can find him on regular social media Twitter |  Facebook  |    |  Youtube  don’t forget to add him

 

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