hello there i did a consultation recently with a young couple who were
interested in buy to let investments
in other words they were interested in buying a residential
property a house or apartment and letting it
and in this way as many people have a sort of a dream or an ambition of
building up a chain or a group or collection of buy to let investments
the idea is that the rental income off the first one will go a long way
towards paying the mortgage and the rise then in value over a period
of time a year two years three years five years or whatever
will ensure capital appreciation for the value of the property
then you can go back to the bank the lender and refinance
based on the equity you've built up in the property
meanwhile you might be working away and the
investment might be performing adequately in other words
you're getting the rent there's no great difficulty you're paying the mortgage
and so on and then you're looking to say after say
five years and after a capital appreciation of the assets
that's assuming that occurs you're looking to finance again and go
again and in this way you're looking then
over a period of 10 15 perhaps 20 years building up a portfolio of
properties portfolio of houses or apartments or
indeed even you could throw in some commercial properties as well which will
essentially pave the way but at the end of the video or rather
the consultation
i just threw away a remark that it was a very simple business and they laughed
but if you think about it buy to let investment is
a simple business so you buy a house and you get a tenant
i mean it's as simple as that now obviously in buying a house you're going
to need to get finance so you need to think about that you need to
arrange your finance you need to be in uh capable of raising finance sufficient
finance and you need obviously to either have some of your own capital or
perhaps some savings or whatever but essentially the fundamental is you
buy a house or an apartment and the second leg to the simplicity of
the strategy the simplicity of by that investment is you get a tenant
and then out of that there's the nuance of
getting a good tenant so you basically take great care to take up references
and carry out a bit of research as best you
can on the proposed tenant and
do your best obviously to ascertain that they're going to be a good tenant of a
good strike record and so on you are entitled to look for
and take up references from a previous landlord that's essentially by to left
investment residential buy to that investment you buy a property and you
let it to a half decent tenant then you need obviously to manage it now
you can appoint a letting agent or engage the
services of a letting agent a lot of estate agents for example
provide the service of managing properties
and they look after them they might organize the
tradesmen that might be required from time to time to carry out some repairs
they might have a maintenance man handy on their books and they will
organize the collection of deposits and they'll organize the collection of the
rent and so on and so forth so you can do that or you can look after
it yourself and you will have the hassle obviously
of getting repairs carried out and collecting the
range yourself and so on and so forth but
again you're going to save a few above by doing that yourself
if you pay an estate agent or auctioneer or a letting agent obviously
there's a cost involved there but obviously they have a
good degree of experience in the area as well so that's something that you need
to consider you need obviously to factor in your own
time and the effort that you may or may not be prepared to
make in other words in the first instance early
on you might be happy enough and very very enthusiastic to carry out
repairs and meet the tenant and collect the rent and so on and so
forth but after a while it might become wearing when you get a call
on a saturday night or a friday night or saturday morning early
that there's a bull gun in the bathroom water that the fuse gone or that the
fridge is after breaking down or that the oven is on the fritz or that
the drakes or the dishwasher is not working
or the spin dryer or something of that nature then the enthusiasm may
dissipate to a certain extent but essentially the point
that i'm making is that by to that investment buy to let
a property investment is a straightforward relatively simple game
you buy a house and you get a tenant and because i've been involved in other
businesses as well i've been involved in retailing and convenience stores and
petrol stations and pubs and construction and so on and quite frankly
there's a lot of moving parts in a lot of those businesses whereas
compared to those businesses property buy to that investment is
straightforward now you need to consider it
you need to consider it carefully you need to consider that
properties the value the capital appreciation
or depreciation is unpredictable they may rise in value they may not and
if your whole plan is predicated on a rise in capital
values over a period of time you need to consider that we did have a
property crash here about 10 years ago in ireland so
that's something that you need to factor in um but obviously you need to
think about the pros and cons but essentially at its assets
by to that investment is straightforward you buy a let's say a residential
property and you get a half decent tenant and you
manage it hope you find this video useful if you do i would appreciate if
you gave it the thumbs up down below thank you