1. Are you in a position to buy?
- Do you have the deposit funds available or are you buying in cash?
- Have you spoken with an independent Mortgage Broker?
- Have you spoken with a Conveyancer and instructed them?
- Have you spoken to an accountant? This is a crucial and often overlooked step: We would advise speaking to an accountant before you buy a property for investment. This is because everyone’s personal circumstances are different and what might be best for you, might not be best for someone else.
Speak to one of our team and we’ll be glad to put you in touch with any of the aforementioned.
2. Market Research – ‘Measure twice, cut once’.
As the saying goes, ‘Measure twice, cut once”. Think of the research, learning and planning as the measuring and the buying of the property as the cut. If you take the time and put in the effort; you will be well-placed to execute your plans confidently and they will stand the test of time. There are no magic wands, building your confidence and knowledge is a journey but, it’s incredibly important.
After all, how can you possibly understand what a good investment looks like if you don’t know the numbers, the best mortgage option, how to structure the purchase (company or individual), the return/yield or the legislation that will impact you in the years to come, without first embarking on a journey of research and education. It’s crucial to put the work in now because ultimately, understanding the basics protects your time, finances and mental health. Letting a property is a long-term financial and emotional commitment, it’s not to be taken lightly, it’s important to pay the task the respect it deserves.This is an absolutely crucial stage of planning and learning.
Using what you’ve learned in step 1, you can start to piece together an understanding of cost and yield on real life examples: we will help you to ensure you’re completely comfortable.
3. Get organised.
Once you’re happy with a property, you need to line up your Mortgage Broker, Solicitor and Accountant and ensure you have everything prepared to make your offer. Knights will be happy to advise on price and strategy for your offer and we can also act/negotiate for you, subject to your separate written instruction to do so. This is important because you want your offer to be put forward in its best light and you want to inspire confidence in the selling agent that you know what you’re doing and you’re not wasting anyone’s time.
Ultimately, this will help you get the result you want on the terms you want.
4. Make your offer
Make your offer confidently armed with the above information and using any information you have gleaned from the selling agent to make you stand out and appeal to the vendor and agent.
5. Offer accepted
There’s still a long way to go but things are shaping up. You can now instruct your Mortgage Broker, Solicitor and Accountant and put them all in funds.
6. The Conveyancing and Mortgage Offer Process
Remember to breathe deeply through this process, with the best will in the world the chances are; it will take 3-4 months+ and it will be frustrating. Until the conveyancing process is reformed, it is, what it is.
7. Exchange
The finish line is in sight, exchange of contracts is the point at which all parties are legally committed to the transaction and cannot withdraw. You can start making firm plans for when you have possession – Completion.
8. Completion
You proudly collect the keys and take possession of your new investment property. Congratulations!
Knights can advise you on any refurbishment works required and how to get the best value for money over the long-term, Knights can also arrange quotes and organise these works on your behalf and simply deduct the cost for this from the incoming rent of the property interest free, subject to agreement and separate instruction.
Knights can now start the process of finding a quality tenant for your property.
