Recommended Property Clubs

Recommended property clubs will definitely help a seasoned or novice property investor alike. My reason for saying this is that unless this is your full time job, it will be difficult for you to be able to source the properties to begin with - after all how do you know which property is a good bet?

Well the simple answer is that unless you're familiar with the area that you intend to buy in then it would be a bit like poking in the dark. You'd have to have a RICS valuation or at least knowledge of what the property should be worth on sale as well as rental AND to not rely on what you're going to be told. Get out of your armchair and take a drive up to the area that you are considering investing in.

Of course it all comes down to the purchase price as that is where you'll make your money - it always does. Why? Simple. The mortgage that you get at the time of purchase will be a reflection of the value that you can earn when it comes to renting the property out.

Dubai creation

So when the market is on it's uppers and you get a RICS valuation that could have been half what it was two years ago, that will be because the mortgage will support the rental income. Or it should do. Yields are the most important item you need to consider when arranging your investment. I've mentioned in the shares section that most shares that continuously do well are income producing assets rather than the ones that will give you just a capital gain - this is the same for any asset including property. Property is a pretty illiquid asset - it's fine when prices are increasing as you'd be able to sell easily but when prices fall no one wants to know.

So when people ask 'what's the easiest way to make money in property', I explain that you buy inexpensively and the rent makes you a profit. Usually to begin with, the investment 'washes it's face' ie it breaks even. So when people ask 'how do I make money with £1000?' The answer is to go and talk to these recommended property clubs to see what they can do and how they might be able to help - there's always someone out there with some creative financing scheme that will be able to leverage assets. There always has been and there always will be, it just depends on the degree of risk that the investor is willing to accept.

Property clubs will help you source an investment that 'stacks up' and will usually arrange the mortgage and so on: they'll make their money from everything that they do for you which is fine if you can make sure that you have a good deal. If not, walk away. Want my advice? Talk it over with a professional adviser.

Here are the recommended property clubs that Investment Property Financing works with. These companies will offer solutions for a number of investors: whether this includes you or not depends on your level of costs and risks that you are willing to bear.

Ajay Ahuja
Andy Shaw

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