We all invest in property to make money; to provide a better life for ourselves and our families, to give us a bigger pension pot or just to generate more income
At NGU Homesales & Lettings, we are experienced investors in the North East (we own over 150 properties and have sourced over 400 for our investors) so if you want to deal with a company that lives, breathes, and sleeps property you’ve come to the right place. It is our number one goal to find you a property that generates income and increases in value to provide you with a better life.
We aim to offer a one-stop shop to our investors, helping them to purchase, manage, refurbish, and sell property under one roof.
Our 5 Guiding Principles of Property Investment:
1. First, Begin with the End in Mind
- To generate income?
- To develop a pension pot?
- To become financially free and have more time with your family?
2. What is your Investment Strategy?
- How much money do you have to invest?
- What is your timeframe?
- What type of tenants or end buyers do you want to attract?
- Are you surrounding yourself with an experienced team?
3. Buy Property ONLY in good areas (not the best, but not the worst)
It’s easy to buy low-value high yielding properties in an area where all the houses are owned by investors.
The numbers look great on paper, but we find once you take into account voids, rent arrears, damages, and the final increase in your house price, it’s best to buy in areas with a good mix of owner-occupiers (i.e. people who own their own home):
- Capital growth is often higher since homeowners will buy on emotion rather than return (your exit strategy will always be easier).
- Since the areas often have fewer social issues, we find rent arrears and voids are lower.
4. Buy a House Rather than a Flat
It may seem obvious, but investors often buy flats for the lower purchase price, higher yields, and lower capital requirements.
Again, we find houses over time will provide a better return;
- Once a family is settled in a house with their children at school, they tend to stay longer whereas people often outgrow flats.
- On a change of tenancy, we find this is the point where landlords spend the most on maintenance. Once a family is settled, they prefer to be left alone whereas when new tenants move in they will raise maintenance to get the property how they want. With the added turnover from flats, this will add to your costs.
- Historically house prices tend to outperform flats.
5. Slip Point Principle
The slip point principle explains that 1 degree of difference can be the difference between being successful or not. Property investment should always be Rock Solid. Points you need to think about:
- Limited Owner Occupiers / Houses vs Flats – Lower valued properties will provide higher rental yields but often such headline figures can’t be achieved through longer voids, more churn, and higher damages. Also, these properties are often in areas with limited owner occupiers restricting capital growth.
- Long Term vs Short Term
- Low-valued properties will produce higher rental yields with restricted capital growth.
- Medium-valued properties will produce stable rental yields and stable capital growth.
- Higher-valued properties will produce lower rental yields with the potential for higher capital growth.
- Avoid Get Rich Quick Strategies
- New build / off-plan without comparisons.
- Extremely low-value properties at auctions.
- Properties significantly below market value may require large refurbishments.
One-to-One No Obligation Meeting:
Whatever your property investment needs, it always begins with a free, no-obligation one-to-one meeting with one of our team. From this, we can build up a unique investment strategy for you.
To arrange your first meeting please call or fill in our contact form and one of
the team will give you a call back: