There’s been a lot of noise in the business entity and BTL marketplace over the last 10-12 months. Lending downturns have been shutting out investors and homebuyers have been having problems getting the mortgages they want. Limiting factors for purchase, BTL’s with bad returns and some first-time buyers precluded from going back into the tenant pool has made for a noisy and competitive market.
A perfect scenario for the well organized – whether business, individual or BTL investor.
A key to overriding chaos is being well organized. I can’t say that I do it in every aspect of my daily life but, being ready and well organized in matters of finance, my mantra of Plan, Strategy, Review remains a must do.
Best value properties (or entities) with the For-Sale sign will always have more than one person rocking up. Best value lettings will always have more than one person rocking up. They hold more attractive terms for investors (including lenders). Being first in the queue you get to make the first choice. And, at a time when lenders aren’t playing nice anymore, being ready for scrutiny is no different to being ready to scrutinize. Money is made in the buying, not selling.
Market values are reactive therefore pricing remains critical in a marketplace that is subject to constant blips and knocks. Best Value always sells first, and buyers rarely overpay willingly – especially when a mortgage is used – but negotiating happens. So, the starting block for all variables is to be finance-ready, long-term plan ready and strategy-ready because any gains up front ensure a bargain is stronger to hold up for the longer term.
A precarious but do-able process which (from experience) my generalist market thoughts for purchasing go along the lines of first-time buyers have the enthusiasm to go hard at an investment, they target lower price tags which can lead to price increases. Higher price tags often fall through from sheer lack of preparation.
Whether the market is negatively or positively geared, navigating entity or property investment requires being asset protection ready; not for the first months but for the years that follow.
Article credit: Copyright SUF © 2019