I have two golden rules when investing in buy to let property, although there are many variable and factors to take into account when stacking a potential property investment, most are principles that I stick to on a general basis because they work for me and for my clients too. Golden rules are exactly that, GOLDEN, and should be the foundation of property investing, especially in overseas property. If you break your own golden rules of property investing, you won't end up in jail, but it will cost you profits if you really disregard your golden rules it could cost you a lot of money.
1st law - Invest below value or in projects with added value
Let me start off by contradicting this golden rule. Property investing, is a long term prospect, so you can pay over the odds for a property and still make good returns given enough time lapse between buying and selling your investment property. However if you can buy below market value, or buy at market value but get a much better location or facilities included in the same price as other are paying for the bog-standard, then you have increased flexibility and will enjoy a quicker return.
Working with GB Capital Partners will give you access to added value property and property below market value. <>
2nd Golden Rule - The property must be rentable.
This is a key factor as even if you pay more than you should for the property this will affect your capital return but if you are unable to source a tenant, you will need to pay for the mortgage interest and possibly capital too. This will seriously reverse your cashflow from positive to negative and may eventually lead to you losing the property to the bank. So we have to ask, who will rent this?
Of my two golden rules, this is by far the most important and potentially catastrophic if you do not take it into account.
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