Tips from the Top

Turn the tables

If you are looking to purchase a property to rent out, do your research by
phoning around and pretending to be a potential tenant. It is generally found
that estate agents will give landlords a higher figure for a specific type
of property than they will to a potential tenant. By turning the tables you
may get a more realistic idea of what the potential yield from your property
should be.

Spread the Risk

Whenever you are looking at a property purchase, particularly when growing
a portfolio, it is vital that you consider how you are going to spread the
risk. Make sure that you consider the differing markets and how exactly you
could minimise your risks. A good way of doing this is to compile a list of
risks and downsides for each property and then consider how you can mitigate
these in conjunction with a different type of property.

Taxing Times

Tax can make a huge dent in any profit that you make from property. It is
possible for an investor to be charged a whacking 40 percent of all profits
from any property sale. Forward planning, from the very beginning can minimise
your liability. Don’t wait until you want to sell, consider the tax implications
even before you buy!

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