What i’ve got here is just a quick checklist of things to consider when buying an investment property um to let – and i know, there’s a lot of our audiences um – you know investment buyers and people that require so, let’s uh, let’s get into this um. So, as i said already, uh, which i won’t stay on too long because we’ve just discussed this um, you know personally, i think it’s really important to have a plan uh think about what your long term goals are. You know, are you investing for income, or is it capital appreciation, that’s more important to you? Are you trying to give up your day job? Are you trying to build a large portfolio um, you know how much capital have you got, how you’re going to get the most out of it. So it’s just it’s forming the basis of what is right for you, uh and don’t just buy what someone else’s idea of a good investment is either. So when you ask you know a direct question, what should what should i buy at the moment? Should i buy a hmm again, it’s a very personal thing. What i would consider investing doesn’t necessarily make sense to what you might consider investing so just make sure that you you you make a plan. This is a big one for me, uh, it seems obvious, but there’s uh, i see a lot of people just get excited and jump in, and you know for me always seek financial advice. First know your numbers um, and also something that rings true for me – is understanding the criteria of the buy to let mortgage um, for example, the rental calculation um. A lot of people don’t notice, but it’s one of the main drivers of how much we borrowed um. The monthly rental typically needs to be between 125 and 145 percent of the mortgage payments, so when you’re trying to assess with something work on the numbers, if you know this sort of stuff, if you’ve spoken to your financial advisor and you’ve, had this information, you can Very quickly assess whether it’s the property that you should be pursuing and whether it’s something you should be taken seriously and also having done this, shows you’re, a serious buyer and it’s strengthened your position during negotiation. So negotiation is uh, something i absolutely love and i stand by you know. Sometimes you you first see a deal when it isn’t quite right, but uh you can make it right by strong negotiation and, of course, sellers and agents need confidence in your ability to move forward quickly. That’S going to really help you next budgeting. Remember it’s not just the purchase price that you’ve got to consider be sure to factor in the following costs: maintenance costs renovations having no tenants and filling board periods, agency fees, mortgage fees, legal costs, compensating costs for purchase; insurances, all these sorts of things. So again, you know: you’ve only got so much money there to play with you’ve got the deposit to front and just make sure you know your numbers before you’re getting into it um type of tenant. You want to attract and uh. You know, obviously, when you’re looking for a property, don’t rely on your own personal preferences, it’s not a home for you. You’Ve got to think about who your tenant’s going to be and actually who you know. What’S what tend to want. Obviously it could be a working professional, family, young, family, older retirees, obviously, both blockchains. Your house shares students, tenants receiving benefits, um all sorts of types of tenants, so think about who your target market is think about the sort of landlord you want to be and who you want to let to um and then make sure the property is presented to Suit that target audience um. You know, for example, if you have, if you have a property that should attract more mature people in an area mainly occupied by retirees, then it wouldn’t make sense to decorate and furnish to uh. You know to suit a younger, a younger person in funky, modern colors, and things like that. So um, like i say, just think about who you’re trying to attract, takes nicely into rentability. What is the demand for the area and who’s likely to be interested? Does it suit your ideal tenant? What amenities are nearby schools, hospital transport links, factories, uh and, of course you know, will demand be strong for years to come? Are you always so you’re always going to find it easy to occupy with the sort of people you want in there? So again, rentability is important to look at um next, one just explore the market um. Obviously the internet’s a powerful tool at the moment – and you can get so much information online – just use all the tools available to research. What properties are available network engage with estate agents, letting agents buying agents, property sources, there’s loads of different options out there and different types of people that are in the market and can provide a certain service get on mailing lists. You know get yourself in there make it clear, you’re, really goodbye, you’re, hot you’re, ready to go now to the forefront of their minds. Um check out auctions. Um again, i’ve got some clients. Recently, they’ve picked up a number of really good deals in auctions that actually have been bought at a reasonable price. They’Ve required a bit of a refurb. The yield has been fantastic and by the time the refurb’s done, they’ve actually increased um in value straight away, because they’ve they’ve added value and there’s going to be a profit margin there too. So auctions are great but just bear in mind. There’Ll be another set of rules to to live by, you’ll, have higher purchase fees and things like that as well um and something i often do use the portals to research most reduced time on market repossessions chain, free sales and again just really look for those motivated Sellers and the portals with their options to sort by various categories is a really good source of all of these things, um and i said just be confident: you’re making the right purchase decision, you’re only gon na be confident by uh, comparing your options and uh making Sure that you’re happy in comparison, like i said earlier, negotiation um had all the price. I personally absolutely love negotiation, uh! That’S what i do it’s, what i’ve done for quite a long time. It’S what i really like to focus on um and the main thing is, is fact find ask the key questions uh. I guess the main thing i want to do is really find out what the vendors motivation is, because if you know what the seller’s motivation is, it’s really going to give you a great indication of how negotiable they might be um find out what they’re doing if They found the property uh they’ve got to sell their. You know their current property to be able to move on. That’S always a good one, because you’ll find they’re more motivated, they’re they’re likely to want to do a deal to make the move work. So that’s that’s! Uh, that’s that’s the situation i quite enjoy finding um and then, before you make an offer, always set a target price for yourself. Um, you’ve obviously done your your numbers. You followed the checklist here. You’Ve done your numbers, you’ve budgeted! You know what you’re looking at. You know what works required, all that sort of thing, so you know what’s sensible to pay for that particular investment to pay for that particular property, so set your target price and then from your target price work back. You know that you’re probably going to increase a couple of times during the negotiation, so know where to start know what you’re going to go up to have that step-by-step um negotiation plan already there, so that you know what move to make and when know when to Throw in the best and final know when to think about walking away and then come back with that cheeky extra couple of grand that you’ve found because you really want it um, that’s the sort of thing i’m talking about and just uh make sure that you’re. You know you’re confident you’re, getting the best deal that you possibly can. This is something as well, which is quite big, and i think this is gon na be. This is something as dawn knows. A lot about this as well, should be able to back up. I think this is going to become more and more common uh over the over the coming months and years across the country um, but look at what restrictions are in the area. So at the moment, there’s over 70 councils in england that bought these schemes go above and beyond government mandatory licenses, so three types of licensing mandatory, such as your typical hmo licenses and so on. Additional licensing, which is again also mainly for hmos and used by councils to apply their own stronger rules or criteria and selective licensing which can apply to all landlords in an area again set by local authority and meaning you would have to adhere to certain regulations. Around property management and tenant safety, and so on and of course, as usual, all of these come at an additional cost and from my research typically, the additional cost is generally around about five to seven hundred pounds for uh for any of these additional licenses. So always do your research on the area make sure and then coming on to protection and insurances um now, obviously, martin is big. On protection talks a lot about uh various things um for me. Just you know: do your research there’s a lot of different products out there, but you’ve got to think about insurance products that are specific to landlords or, you know, make sure you’ve at least notified your insurance by that you’re, letting your property out. You want to make sure you’re covered, for you know against things like tenant damage. Um, that’s really important. You know there are certain things that could happen in a bicycle property that are out of your control, but make sure you have the adequate cover um. So do your research and make sure you’re comfortable with what you’ve got there. Um also think about protecting your rental income, especially at the moment. You’Ve already had a few questions tonight about you know upcoming redundancies and stuff. Like that, do you know what protect your income? There’S there’s insurance products out there. Also. You know you can also cover legal costs if you ever have to go down an eviction route and that sort of thing there’s deposit replacement schemes now which offer more more protection than deposits. Um, there’s so much as a landlord that you can. You can access when you’re letting property, so do your research and uh work out what’s best for you and then finally consider your responsibilities and legal obligations um. Obviously you know you guys are here you’re watching this uh. A lot of you would, you know, be regular viewers of this sort of thing, and you know you won’t come to it as any surprise you that there’s there’s, you know 100 around about 180 pieces of legislation now and uh. Obviously, that’s that’s. That’S growing! All the time it seems, there’s always new things coming at us and uh, especially with the pandemic. There’S there’s additional things that no one was expecting uh. However, many months ago, um, but just make sure you you know you start off compliantly, you have the right management set up to keep on top of everything, and you just try and avoid as much of the liability as possible by doing things right so always consider Your responsibilities and legal obligations um, so i think that was ten. I aim to get ten, so that’s my uh sort of key checklist and things to consider before investing in the property.

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