The recent cut in interest rates means that cash is no longer generating good returns, and estate agents have reported a flurry of interest from investment purchasers.
Joy comments:
“Professional investors generally retain a good conveyancer who acts for them regularly and provides a personal service which is responsive to their needs".
“Good conveyancing work can make the difference between deal and no deal, particularly in a volatile climate where people are changing their minds overnight".
“There has been a rise in “call centre” style factory conveyancing in recent years. That may suit some people but the process generally takes its course without reference to the customer and is rarely a good choice if you need a more responsive service".
Joy’s tips for purchasers include:
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Have your conveyancer and your finance lined up before you make an offer. Your bargaining position will be stronger as a result.
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Cultivate the estate agent. He or she knows which sellers are open to offers, and what level of offer may be acceptable.
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Don’t buy poor quality properties just because they are cheap. Ask yourself, if you had to pull the property down, what would the site be worth?
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Don’t expect to be able to sell again quickly. This is not a market in which you can make a fast buck.
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Keep your plan simple. Trying to be too clever is the downfall of many would be investors. Stick with what you know rather than the recommendations of so called “investment clubs”. If you know an area and the local property stock, you are far more likely to make sensible decisions.
Joy’s personal view is that the buy to let market is far from dead. She points out that if mortgage lenders continue their current policy of more restrictive lending, there is going to be a large and growing pool of renters who are still saving for a deposit.
However, would-be landlords will also need a substantial cash deposit in future, and should draw up realistic budgets, consider all costs, and secure funding before making any financial commitment.
For further information contact Joy Savill at Hawkins on (01553) 669083. |
