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How Ellie Saved a Landlord £160,000!

Ellie saved a landlord for making a costly mistake today.

A landlord called us to tell us about a property he had agreed to buy. He wanted to know a rental figure he could expect.

During Ellie’s due-diligence she noticed the EPC which was carried out in August this year was only rated G
All properties rented need to be at least an E and this will increase to a C in 2025

If the landlord went ahead and purchased this property he would not be able to legally rent it.

This would have left him with a property he paid £160,000 for which he would not be able to receive an income from before spending thousands on upgrading the property (Which was sold to him as a refurbished property).

To make matters worse the estate agent selling the property knew the rating of the EPC and that their buyer was going to rent the property out but did not advise him of this. 😲

If you ever have any questions renting or buying, please do not hesitate to call us, it could save you thousands of pounds.

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Beginner’s Guide to Building a Property Portfolio in Worthing

Beginner’s Guide to Building a Property Portfolio in WORTHING 🏘

In this two-minute read, we look at the basics of building your portfolio and how to try and make your investment a sound one.

Building a property portfolio might sound like a great way to build an additional income, but it can be a tricky area to navigate with lots of pros and cons.

Getting started
First things first, where is the cash coming from? Have you already got a property and looking to buy a second? Or maybe you’re tentatively dipping your toes into the rental property market for the first time.

Whether you’re refinancing an existing property, or you’ve won the lottery (fingers crossed!), your initial pot needs to be big enough to cover the deposit (minimum of 25%) and legal costs. This is the minimal starting point when looking to buy additional properties.

Create a property profile
Have a clear idea of the kind of properties you’re looking for. Do you want to renovate and add value, or do you want something that tenants can move into straight away? Sticking to a checklist of requirements will help you stay focused and find a deal that really works for your budget.

Always know your numbers
Money money money… no this isn’t an ABBA song, it’s the core of building your property portfolio. A savvy landlord or property owner needs to know exactly where the money is coming from (or going to) for every step of the process. There’s your deposit, legal costs, stamp duty, renovation costs, rental yield, agency fees etc. It’s basically a never-ending spreadsheet that you need to keep on top of.

Knowing your numbers and carefully planning a budget is the key to successfully growing your portfolio.

Get chatting
Building a property portfolio requires you to build relationships. Pop in for a coffee at Jacks & Jones, tell us what you’re looking for and your budget so that we can keep you in mind when anything suitable comes up. Similarly, our Lettings team has a wealth of knowledge regarding the types of tenants attracted to Worthing and their property requirements. So, this will help shape your initial property searches and buying decisions.

Create a network
Trust is so important when you’re buying property. Make sure you’re working with people you can rely on and that have the relevant experience. This applies to your solicitor, mortgage broker, and your builder (if your purchase needs some TLC).

Once you’ve established these working relationships, next time, hopefully the process will be easier. Personal recommendations from a friend or family member are a great place to start, but never feel like you have to settle for the first professional you meet.

To get started with your buy-to-let property search in Worthing, give us a call on (01903) 267700.

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Thinking of Moving to Spain? Read This First

This three-minute read looks at a few of the (many) things to keep in mind if you’re thinking of moving to Spain.

The lure of a place in the sun has long appealed to people from the UK. After the Covid-19 lockdowns, many people have brought forward plans of a new life soaking up the sun and culture of a place abroad.

And Spain is always at the top of people’s holiday home away from home – even post Brexit.

But as with any move, there are some general things to consider before you take the plunge and start living la vida loca.

Sell first
When you’re looking online, it can seem like there are properties that have been sat on the market for several years. You can be lulled into thinking this is the case for all properties. In fact, all you’re seeing is those that are left over. Like the UK, there are many properties that will never make it online. To ensure you don’t miss out, don’t go viewing without being in a position to buy.

Private sellers
‘For sale by owner’ is something that happens quite infrequently in the UK. However, in Spain, it can be a more common practice. The downside of this is that there isn’t a third party involved to give you facts without emotion. There are plenty of horror stories about promises made and not kept. It’s more often better to go through an established agent.

Unregulated industry
Like the UK, estate agents aren’t regulated in Spain. The difference is that in the UK, estate agents have to be members of the Ombudsman Scheme to ensure the customer is protected.

There’s nothing like that in Spain. Unfortunately, this can make it difficult to identify who to trust.

It’s a good sign if the agent has useful, valuable content on their website and social media. Even better if they respond to your enquiries quickly and helpfully.

Steer clear of agents who have faded, out-of-date paper posters in the office window or who are slow or unresponsive to your enquiry.

Gestors and lawyers
Unlike the UK, you don’t have to use a solicitor or conveyancer to buy a property. A gestor (pronounced ‘hestor’) is more like an accountant, but they can do the paperwork.

They’re a lot cheaper but that’s because they’re not legally trained. It can be appropriate to use a gestor for a straightforward purchase. Lawyers can be more expensive but are the sensible option if your purchase is more complicated.

However, not all lawyers are made equally. Make sure you seek out plenty of local opinions. And make sure you never sign anything that you haven’t seen in English, or your first language.

It can go well
It’s not all doom, gloom, and property pitfalls. Many people successfully move to Spain and avoid falling foul of sun-soaked shysters. It’s just safer to know about the risks before you start the process.

If you’re looking to move abroad, now is a great time to get your property on the market. If you’d like a no obligation chat about your options, give us a call on 01903 267700.