Updated: Apr 11, 2021
I am working with a lot of clients from Hong Kong who are looking to invest in property in the UK. Here are 5 mistakes I see them making over and over again. Check out my video or read the article below
Focusing too much on yield and not enough on capital growth.
We all like to make a healthy yield from our investments, but don’t overlook capital growth. In the long run, capital growth is often where you will make the most money. A very high yield on a BTL, can often be an indication of less chance of capital growth.
Too much focus on interior design
I spend a lot of time scrolling through properties on Rightmove and Zoopla and it is natural to be attracted to those with the nicest paint, carpets and pot-plants. Don’t be fooled! Nice interior design should not be your priority when deciding which property to buy, this comes way down the list after location, fundamentals and building condition amongst other things.
Assuming that closer to the centre of town is better
Although being close to the city centre can be great, it’s not always the best and is certainly not the only part of town to consider. Indeed, some areas close to the city centre are best avoided altogether. With an in-depth knowledge of the suburbs, you can often find better investments and make Smarter Property decisions.
Thinking that Rightmove is a shopping cart
Just because a property is listed for sale on Rightmove, it doesn’t mean you can automatically buy it. The property may be already sold subject to contract, it may be hard to get a viewing, there may be other bidders. Manchester is a booming market; it pays to view a lot and be ready to buy when the opportunity comes.
Emphasizing size over location.
We have a property saying in the UK, ‘location, location, location’. Although finding an investment with adequate size requirements is important, it is often more important to pick a location with good fundamentals. Close to transport links, good schools and plenty of local employers please!
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