UK Property Investment Blog

The phrase ‘you get what you pay for’ no longer applies to the property market according to leading mortgage lenders.

Look back 5 years and £150,000 might have bought you a London Garage or a small 1 bedroom terrace, but in the current financial climate this figure now holds a whole new meaning for investors.

In a report released by Nationwide they reported that the average UK property is now worth £150,501 with the key difference being the types of property investment that are available to you has substantially grown.

For £150,000 you can now invest in a 2 bedroom semi-detached in Cheshire or a 1 bedroom Victorian studio conversion in South London. Essentially, properties that were previously out of reach, are now more widely affordable and easier to attain.

However, this is not the only positive news to come from these price falls. Under the governments new stamp duty scheme, each of the afore mentioned properties require no stamp duty fees:

Up to £175,000: 0%
£175,000 to £250,000: 1%
£250,000 to £500,000: 3%
Over £500,000: 4%

With property prices at their lowest since May 2004, the combination of the above information with these figures means investing in properties has never been more profitable, making now, more than ever is the perfect time to start structuring your property portfolio for success.

Here is a very, very common question I have encountered over the years from fellow property entrepreneurs:

“How do I find bargain property?”

You need to know where sellers are and how you can find them.

Apart from the usual auction and estate agency routes there are many other ways of finding sellers but you must be ‘in the market’ to stand a chance.

You need to spend quality time letting people know that you can buy properties QUICKLY for CASH (whether you are a quick cash buyer or not is irrelevant at the
moment).

You have to get yourself known because motivated sellers (for obvious reasons) do not shout and scream about their debt problems or impending divorce…

The secretive nature of motivated sellers is precisely why it is so difficult to find and buy bargain property!

You MUST spend quality time nurturing relationships with people who come across motivated sellers, so that they call you right away as soon as they hear of
somebody needing a quick and/or cash sale of their property.

Some examples of people you need to know:

• Local estate agents
• Local letting agents
• Anybody involved in the building trade
• Surveyors
• Mortgage brokers
• Your local postman/post lady
  
• Local busy bodies (usually older ladies/gentlemen or members of neighbourhood watch).
  These people are surprisingly aware of what is happening in the
  community.
  
• Property finders – Usually paid a percentage fee for locating property.
  
• Local property dealers – also paid a finders fee.
  
• Solicitors – probate etc.
• Accountants will know of clients that may be in financial trouble.
  
• Your hairdresser – he/she will always spend a lot of time gossiping with customers so make sure you let him or her know about your property business, and the fact that you pay a finders fee for referrals.
  
• The owner of your local off license/store. He/she will also spend a large amount of time gossiping with customers. Sometimes storeowners will let you stick up one of your business cards on the window or door.
• Don’t forget to hand out your business card to EVERYBODY you meet, you never
  know who will come across a motivated seller.

I have purchased two of my properties from people who referred leads to me simply because I handed them my card and told them I paid £500 for referrals
(always mention you pay a finders fee!)

Remember referral leads will make you the most money because they cost nothing to obtain, somebody they trust has referred them AND they have already been pre-qualified for you.

Learn to become skilled at analyzing a deal by asking relevant questions of the seller (or agent, finder, dealer etc) when you speak to them – this process is known as ‘qualifying’.

Curious of other strategies to get property bargains? Click here to claim your FREE property course!