Slip point principle:

The slip point principle is the 1 degree of difference between a successful property investment and amateurs. Property investment should always be:    ...

The slip point principle is the 1 degree of difference between a successful property investment and amateurs. Property investment should always be:

ROCK SOLID PROPERTY INVESTMENT

LITTLE MONEY left in V’s NO MONEY left in property strategy:

When buying property through a Buy to Let mortgage or commercial finance for a House in Multiple Occupation, if you buy at the right price you can add value through refurbishment (improving the condition of the property or adding rooms) to make the property go up in value enough to be able to pull out all of your refurbishment costs and original mortgage deposit to allow a LITTLE MONEY or NO MONEY left in strategy.

HOWEVER:

There is a difference between a LITTLE MONEY left in strategy or a NO MONEY LEFT IN strategy. Most of the time expect to leave in between 10%-25% of your initial capital investment. Bad areas will allow you to pull out most or all of your money buy why would you want to buy in a bad area?

LIMITED OWNER OCCUPIER AREAS:

Extremely low valued properties will provide great headline high rental yields but more often than not, such headline figures cannot be achieved through voids and the type of tenants they attract. These type of properties are in mainly investor only areas with limited owner occupiers causing heavily restricted capital growth.

LONG TERM V’S SHORT TERM STRATEGY:

• Low valued properties will produce a high rental yield but restricted capital growth.
• Medium valued properties will produce a stable rental yield and stable capital growth.
• High valued properties will produce lower rental yields but the potential for higher capital growth.

AVOID GET RICH QUICK STRATEGIES:

• New build off plan with no sold price comparisons to back up the valuation.
• Extremely low price properties at auctions. The reason why my Estate Agent will put a property in an auction is generally because we can’t get a buyer on the open market. The properties are generally very low priced in limited owner occupier areas.

ROCK SOLID PROPERTY INVESTMENT

Slip point property principles explained

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email: mikebell@nguhomesalesonline.co.uk

Or call: 0191 491 0333 and ask for Mike Bell

Investment property that will run itself letting you do the things that you enjoy