One of the core principles of property investing is that, when you can, it’s often better (long term more profitable) to buy a property needing work(repairs and/or improvement).
Why? Because it means you can add value, often more value than you spend on the works themselves.
But here is the dilemma. Although theoretically that model works well with buy to lets, you’ll find that many lenders want a property to be lettable/habitable when you buy.
Many buy to let lenders won’t want to finance a property that needs “too much” work.
So the question is, what is “too much” work?
Well, frustratingly there is no single industry definition. Each lender has their own view on this.
This can create problems for the unwary.
In this video I pick my very good mortgage brokers brains on this subject.
Here’s to Successful Property Investing.
Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
https://thepropertyteacher.co.uk
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to:
https://thepropertyteacher.co.uk/the-successful-property-investors-strategy-workshop
