The Complete Guide To Property Investment

Free: The complete guide to property investment

The complete guide to property investment. This is a VERY detailed guide to property investment. The aim of the property development course is to help empower people to get involved in property including property investment.

This guide is MEATY and will only get more detailed as we develop it constantly. If you want a taster of this guide go here for a less than 5 minutes summary of this guide which is designed to give you a quick overview.

This is the ultimate guide describing the property investment process – a powerful investment tool that builds your net worth and benefits your local community. If you are interested in starting making money in property investment remember to start small and work your way upwards – nobody starts out with a huge property portfolio in their first year.

Who is this guide for?

This is for people who are already financially sound (no bad debt, positive cashflow, constant savings, high credit rating).

If you are not financially sound then there is no point reading about property development and property investment. Sort this out for free right now. That’s correct, if you go to this part of the website we will teach you how to be financially sound for free. go here now

If you have sound finances then read on:

So many people have amazing finances and then go out and buy an unsuitable first family house leading to a lifetime of huge mortgage payments and missed investment opportunities.

Do not let that be you.

This guide is for people who are saving for their first mortgage for their family home. They want to stop paying rent and stop having a landlord. They want to be settled and feel like they have a home of their own.

But they also do not want to make a mistake when buying their first house. They want a property in which their equity will rise quickly in value so that they can start investing in their first investment property.

This guide is also for people who want to buy multiple properties to rent out so they have a stable positive cashflow for life.

If this sounds like what you want to do then read on.

So in summary this guide is suitable for people who are:

  • already in control of their finances. If you are not then go here now
  • looking to buy their first family home,or if you already have your first family home…
  • interested in buying an investment property within two years of moving into their family house.
  • motivated to build a small, medium or large property portfolio

In this guide we are going to talk about:

  • creating focus
  • getting onto the property ladder
  • stopping paying rent
  • avoiding buying a property that is not the right fit for you – so many people buy a house based on how they feel.
  • buying a property that is a great investment as well you loving it.
  • buying a family house with an eye on buying an investment property within two years of moving in. You have to buy a house that will allow you to create equity within two years of moving in.
  • investing in your first ‘buy-to-let’ property
  • build a property portfolio

What will you learn to do?

Part 1: Beginners property investment

Sorting out your finances and buying your first home are basic steps in property investment.

We have already deal with sorting out your finances here.

At the end of part 1 of this guide (once you have actually implemented the steps) you will:

    • be moved into your family home
    • you will be set up to buy your first investment property within two years

Part 2: Intermediate property investment

We will also move on to look at the next step in our intermediate level guide.

The intermediate guide is for people who have solid finances (no consumer debt), growing savings and a mortgage on their first family home.

These people are looking for ANOTHER mortgage to buy a property they can rent out.

They want to start taking in a small income from this rental while it pays for itself and rises in value.

These people also plan to build a retirement nest-egg and they know that this starts with an investment property.

They want a low-risk, low hassle investment.

This more intermediate guide is suitable for:

  • people who have their own family home
  • people who are in control of their finances
  • people looking for an investment opportunity

We teach that you need to start building a nest egg for retirement

  • creating focus so you can actually take action
  • buying an investment property/buy to let property
  • creating a positive income every month from the property

Part 3 : Building a property investment business:

Finally the guide will look at how you can turn property investment into a full time business

The guide will help you:

  • create focus to make things actually happen
  • to start building your portfolio from one property to multiple properties
  • look at the tax and legal implications of owning such a business

Part 1: Beginners property investment

Introduction : Starting point, Deciding on a property investment strategy

All property strategies should start by focusing on getting a mortgage for your first family home.

This is because it means you are not paying rent and seeing all that lovely hard earned cash leave your bank account for good. And it gives you a stable base from which to work on your career and earnings. Having a mortgage on a family home (even if it is a two bedroom terraced house), gives you a wonderful sense of belonging to a community and a sense of control of your finances.

This family home should be very affordable and should be just big enough for you and your family.

It is not a good strategy to take a mortgage on a house that you will grow into—this is because everyday YOU are paying for all that extra space you do not need.

It is a different case if you are planning to buy a large house to rent out the rooms because those rooms are paying for themselves.

So all property strategies start with getting that first, very affordable mortgage for the family home.

This mortgage should be interest and capital repayment so that you own the house outright at the end of the period.

In terms of sorting your finances and building up to getting your first mortgage we deal with that in personal finance. So if you have not sorted your finances and got your first mortgage deposit ready then go there now.

We are not going to speak too much about getting a mortgage here as if you have your finances sorted and a good mortgage deposit (save at least 10%-25%) then getting a mortgage is like buying a new car, its really easy. Information on  the various types of mortgages can be found below:

How to get your first mortgage?

First time buyer mortgage

Can I apply for a first time buyer mortgage ?

Buying your first home, a guide to

Self employed mortgage

Part 2: Intermediate property investment

Now, from here there are two divergent paths. You can:

1- Build equity in your family house, save another mortgage deposits and then re-mortgage to start flipping properties.

If you start flipping properties you are moving into property development and we have a free guide here on property development.

We separate property investment and property development quite strictly in this website but they share a lot of common knowledge and skills,

So if you are sure you are interested in property development and flipping/trading houses then go there now. The rest of this section is all about property investment.

2 – Build equity in the property, save more mortgage deposits and re-mortgage to obtain a second (and a third, fourth..) mortgage for a buy-to-let investment property

You can use interest-only finance to buy:

  • one off apartments and flats to rent to students and young professionals (single lets)
  • houses to split up into separate flats to rent to students and young professionals (multi-lets/hmos)
  • houses to rent to families (single lets)
  • commercial properties to rent to businesses
  • land to do nothing with and wait for it to increase in value

All of the property investment strategies have the same general, broad stroke steps which we will explore now:

The steps of property investment:

Once you have picked the property strategy that suits you then you can move onto the following procedural stages of property investment:

  1. Having an Idea
  2. Creating a Feasibility plan
  3. Business plan
  4. Paperwork
  5. Book appointment for finance
  6. Agreement in principle
  7. Search for property
  8. Buy property/ land
  9. Marketing
  10. Rent
  11. Maintain your property
  12. Eventually sell
  13. Review
  14. Repeat

As you can see, creating a strategy that suits you and what you want to do in your life is the hardest part. Actually plodding through these investment steps above is the easiest part. Of course each step can be boring, frustrating, costly, time consuming but if you keep plodding along you will get there. You do not need great skill, cunning or business acumen to go through these steps. You just need to fix your strategy and keep going.

Step 1: Having an Idea

All property investment ventures start with one idea.

This idea must be within your chosen property investment strategy.

If you have chosen ‘Buying houses to rent to families’ as your property strategy and you start dreaming up ideas of buying land to do nothing with then stop!

Pick one property investment strategy and then develop ideas within that one property investment strategy.

So if you pick ‘Buying houses to rent to families’ , then only consider ideas that concern ‘Buying houses to rent to families’

Step 2 : Creating a Feasibility plan

Once you have an idea then the next logical step is to develop this idea using a feasibility plan.

A feasibility plan is not as detailed as a business plan. It is a quick, easy to fill in document that  can tell you very quickly whether an idea makes financial sense.

What is a feasibility plan ?

What does rental yield mean in property investment and why is it important ?

Step 3: Business plan development

Once the idea passes through your feasibility plan and is therefore ‘feasible’ the next logical step is to develop it using a business plan.

A business plan is detailed document that outlines all the projected costs, incomes and profits of the proposed venture.

How to create a business plan

Step 4: Paperwork

Once you a solid business plan that makes financial sense you can move towards financing the business.

Unless you are already wealthy you will need finance for a new business.

Even for rich and wealthy people it is quite common for them to use finance to fund a new business.

Then you can start preparing your paperwork that a bank will expect to see.

What paperwork will a bank require?

Step 5: Book appointment with your source of finance

You need to book an appointment with your bank or investor

For property investment this will be usually in the form of a mortgage.

What are the various types of mortgages available ?:

Second mortgages:

Second mortgage

Residential mortgage

Buy to let mortgages:

Buy to let mortgage

Re mortgages:

How do I remortgage ?

Bad Credit mortgages

Bad Credit mortgages

Portfolio mortgages

Portfolio finance

Mortgages and age limits:

How old do you have to be to get a mortgage?

Am I too old for a mortgage ?

Whoever is giving you finance must be regulated by the Financial Conduct Authority or the Prudential Regulation Authority:

What is the Financial Conduct Authority ?

What is Prudential Regulation Authority ?

Do not forget – everybody who is in the mortgage offering game knows and talks to each other:

What is the Council of Mortgage lenders ?

Do you need a mortgage broker ?

Do you need a mortgage broker

Banks in the UK:

There are many options for property investors in terms of whom they obtain finance from

Never allow yourself to think that you local bank is the only option. For sure, cultivate an excellent relationship with your local bank but remember that there are a million options.

Lets take a look the banks and building societies in the UK in more detail

There are many questions regarding getting a mortgage from a bank:

Moving home

General questions re all types of mortgages

Step 6: Agreement in principle

Once you get the green light you can start actively trying to source a deal and close the deal

What is an agreement in principle ?

Step 7: Search for property

You need to look for a property

New build houses:

What is the NHBC and is it any good ? 

Should you buy a new build home? 

Should you buy a new development home ?

Redrow Houses

New build apartments:

Should you buy a new build apartment ?

Second hand properties:

Should you buy a second hand property (an existing non new property) ?

Step 8: Buy the property or land

You need to buy the property or piece of land

Buying property guide

Step 9: Marketing the property

You need to start marketing your finished property.

This is different that just the task of selling. Marketing includes selling but selling is only one small part of marketing.

How to market your property 

Step 10: Rent the property

You need to rent the property to start taking in your cash.

Everything you need to know about renting properties

Insurances

Every landlord needs insurances:

You should insist that your tenants have:

  • Tenants contents insurance -every thing you need to know about coming soon

Step 11: Maintain your property

As a property investor you need to maintain the property.

Some investors are astonished that they have to spend money on maintaining their properties.

You spend money on your haircut, your skincare, clothes. Or think about how much you spend on new tyres and oil and filter changes for your car.

Property needs to be maintained. Simple. We at the property development course teach you to take these costs into account before deciding to invest in a property.

How to maintain your property

Step 12: Eventually sell (or maybe not)

Maybe you will choose to sell the property at some stage in your life.

How to sell property guide

Step 13: Review your project

You need to compare your business plan to what actually happened:

How to review your property project

Step 14: Repeat the investment

Some investors have such an awful time in their first property investment that they say ‘never’ again.

Well that would be a silly thing to do.

If you hang in there, review your mistakes and wins and return to the property market you will do better.

The more you invest in property, the better you will do.

One of the best examples of this is as follows: A child goes to school and learns basic maths. At the time basic maths is quite difficult. But as the child progresses then basic math becomes easier. In progressive years as the child studies Algebra and so on, he or she looks back on basic maths and laughs at its simplicity.

In property development and property investment the same is true. At first basic concepts like rental yield and amortization schedules are difficult to get your head around.

But as time goes on everything gets easier.

So hang on in there!

PS You can also invest in commercial property

Commercial rental property

Warehouse REITs

Foreign Investment

Should I invest in Dubai?

Dubai properties

Books for property investors

We curate a list of our favourite books and audiobooks on property investment here

Part 3: Building a property investment business

Coming soon