With something like investing in property, it can be a little scary taking the first step, especially if you believe what they tell you on the news.
But by waiting until the ‘right’ time, you could be missing out on a golden opportunity to make some serious returns, and do you really want to have your money sitting in the bank for yet another year, being eaten away by inflation?
It’s true that times have changed, but that just means we need to adjust our strategy. We’ve had a few conversations recently with potential clients about what’s stopping them from investing in property and we wanted to share what we discussed in case it gives you the reassurance that you are looking for.
1. “I’m too busy”
Let’s face it, you’re probably trying to balance your work, your family, maybe your parents, not to mention finding time to live life! The last thing you want to deal with is calls from a builder because the paint hasn’t arrived, or a call from the estate agent wondering when you are going to pick up the keys.
We specialise in helping busy people just like you invest in property. Our unique model takes care of all of that and removes the stress and hassle of investing.
2. “I am a total beginner”
If you’re new to the world of investing or are looking to purchase your first buy-to-let property, we know how daunting it can be because we’ve been there ourselves!
We understand the thoughts that could be going through your head – the fears, the doubt, the stress, the risk and the feeling of a complete lack of time to do it all! In turn, this can easily make you feel anxious and overwhelmed, and ultimately stop you from taking action!
That is exactly why we created Lifestyle Property People – to make investing in property more accessible to people that don’t invest. We strive to make investing as simple as possible, guiding you through the entire process and introducing you to all the right professionals along the way to make sure you don’t miss anything.
3. “Can I trust you?”
We really do understand the significance of our clients’ decision to work with us. Not only are they trusting us with their hard-earned savings, but also their financial future. Over the years we have built trust with our audience, with many clients signing up to purchase more properties as soon as their first one completes.
But how do we earn this trust with prospective clients?
The answer lies in our core values of transparency, integrity and professionalism.
Over the years, our property investment process has been crafted to ensure that clients know exactly what they will be getting before we start. We sit down together to understand their story and what they’re trying to achieve by investing in property. We make sure we answer any and all questions they have, to nurture the feeling that we are in this venture together and that their success is our success.
This means that by the time we complete our service, our clients are more than happy to rate us 5* on google. Click here to check out our reviews
4. “What if the property doesn’t rent”
Although nothing is guaranteed, we have purchased over 300 properties in the Northern property markets and every single one has been rented out, usually at a higher rent than initially illustrated. Having done the research, there is far more demand than supply in the specific areas that we invest in and since we refurbish our properties to a good standard, they are usually snapped up within the first few weeks.
Securing a tenant may take a little longer around Christmas and the New Year, but we have a process in place to time our completions well and ensure the financial impact to our clients is minimised.
5. “The property market might crash”
Of course, there are times when the market is slightly up and others when it is slightly down. But for people who are looking to make a return over the long term, there will never be a “wrong time” to purchase property as an investment.
Now, it is true that property prices are due to drop slightly.
“We expect house price falls of up to 5%…but the number of sales going through will remain buoyant for a range of structural, demographic and economic factors”
Richard Donnell, Executive Director, Rightmove
This is indicative of a slowing in the market rather than a house price crash. In the last year alone, prices have increased by over 12%, so a 5% reduction isn’t sending people running for the hills. For comparison, when the market crashed in 2008, average UK property prices dropped by 16.6%.
On top of that, the upside is that the uncertainty has led to a short-term drop in demand, helping us negotiate better deals for our clients. We saved one of our clients over £25,000 just a few weeks ago! When the market does pick back up, that £25,000 will add to the capital growth and over a 10-year period, capital appreciation typically accounts for approx. 75% of the overall gain.
6. “What if the mortgage rates don’t come down”
Let’s face it, mortgage rates probably won’t return to their almost zero level in the near future! The good times are well and truly in the past, but BTL is far from dead, and you can still profit if you know how.
While some people are expecting the base rate to increase by another 0.5% in 2023, mortgage interest rates, which are based on swap rates, have already started to, and will continue to, fall steadily throughout the next year. When they get down to around 4.5%, the uncertainty will turn and people will start to invest again, increasing prices. Knowing that the prices will eventually recover, the logical strategy is to get in now, while you can still get a good discount on the purchase price. In the meantime, rents have and will continue to soar, stabilising investor returns in the short term.
7. “House prices in my area are too expensive”
If Don’t let the prices of property in your area put you off investing, just invest elsewhere. Many of our clients are based in and around London or in other capital cities around the world. They typically have wanted to invest in property for some time but haven’t been able to consider investing out-of-area because they don’t have the right team in place. We open up the opportunity to invest your money in the Northern property market without ever having to leave your own home.
8. “I think I can do it by myself”
You could carry out a service on your car yourself too, or fit a new boiler yourself, but usually these are jobs that you reserve for people who have expertise in that area.
Even if you had the knowledge of what to do and how to do it, isn’t your time more valuable than driving up and down the motorway for hours on end or chasing solicitors for a completion date?
We all that getting it wrong could leave you with a liability that costs you money every month, instead of an asset that increases in value every year. The key question to ask yourself is: Is it worth the risk of getting it wrong?
9. “It’s safer to keep my money in the bank”
There are many reasons why someone would think that this is true – firstly, you can see it when you log on to your online banking. But, in case no one told you, these are just numbers on a screen, and unfortunately, the Bank of England has been printing money, decreasing the value of every pound. This is the impact of inflation. And with inflation in double digits, the money that you have ‘safely stored’ in the bank is eroding away and you’re actually losing money every day! Check out this post for a better explanation here
The Main Take Away Point
The main message we want you to take from this is that anyone with funds can invest in property. You just need to be committed to your goal, ignore the noise and have the right team behind you.
Click here to read some of the life-changing stories of our recent clients. I’m sure you will find someone who was in the same boat as you before they started working with us.
Still on the fence or want more information, click here to start a WhatsApp chat instead.