Thursday, 17 September 2015

Don't get emotionally attached to your Warrington investment property




This is an article that I have been meaning to write for some time and I’ve been asked about it enough recently. I have mentioned it in several blog posts before – it’s not to get emotionally attached to your Warrington investment property!

I recently did some viewings on a potential investment property with a Warrington Landlord who picked up my Newsletter at his local golf club and took me up on my offer of coming along to viewings and hearing my opinion.

Heart VS Head

Henry is from the Grappenhall area of Warrington. When I told him the areas to achieve the yields he wanted (he would be looking at 2/3 bedroom houses in particular areas of Padgate, Orford and Bewsey), the landlord was sceptical as he couldn’t see himself living in these areas.

You cannot let emotion come into play when purchasing a BTL property – just because you wouldn’t live in certain areas, doesn't mean others wouldn’t.

It’s said that you make profit when you buy a property, not when you sell it. This is because you are a little more in control of what you pay rather than what you are forced to sell for. With this in mind, why pay the high end retail price for a property just because it looks sweet and idyllic, when what you need, first and foremost, is a property that meets all the financial requirements of a landlord? 

It is so easy, especially for the novice property investor, to fall in love with a property and let their heart rule their head, and to become so emotionally involved that they lose control of their finances and let their emotions win.

Why is it so important to invest in the right Warrington Property?

The most important message to convey in all of this is that investors MUST buy well in the first place, because if you start the investment processes in the wrong place, everything else just doesn’t stack up. If a property price is too high, and you can’t get anywhere negotiating some money off the price, then there is one thing to do – walk away. There will always be another opportunity.

The novice investor often thinks that by paying more for a property they will get a better property (which is not necessarily true). They cannot reasonably expect the market, which is an average of many transactions and house prices, to change its tune in order to meet them at a ,now inappropriate, level of return that they expect, simply because they paid too much – market forces don’t work like that.

As for buyer beware, well, they better had beware it – with a capital B.

Check out the larger, more important facilities in the house such as the boiler, electrics and plumbing, especially when paying in cash. Many investors won’t do this and once it belongs to the buyer, it’s a problem you’re stuck with.

If you are thinking of getting into the property rental market and don't know where to start, speak to us for impartial advice and guidance to get the best return on your investment. Pop along and speak to us in person at our offices at 6 Bankside, Crosfield Street, Warrington, WA1 1UP, or email me personally on manoj@hamletwarrington.co.uk.

Don't forget to visit the links below to view back dated deals and Warrington Property News.