Not the keys to your home!
How many times have you been advised to stand in the customer’s shoes?
How many times have you been advised to try to think like your customer?
It’s difficult advice to follow, but it’s good advice, too.
It’s especially important when you’re thinking about how you’re going to sell to high net worth clients.
One of the themes of this series of articles about selling to high net worth individuals in that people with more resources to deploy have more choices in their lives.
Nowhere is this more true than in the field of property investment.
People who buy property as an investment have lots of choices that are simply not available to people buying their family home. Mike Beckley of Midas Property School offers some insights into the concerns of property investors and answers the question:
What’s important when someone is buying property as an investment?
Read Mike’s advice below.
“Choose the right location
This may seem obvious, but location is King.
Buying in the right place is hugely important for people who want to ensure growth in value. This is key to a successful investment strategy. For myself, I would rather have a one bedroom flat on the riverfront in Docklands than a couple of three bedroom flats in Hull. The value of the Docklands property will always be more stable, and the prospect of capital growth is much more likely.
Forget the idea that you would never consider living in Central London when choosing where to buy. Millions of other people do. So demand in specific locations will always be high. Remember , too, that infrastructure and communications links are important when considering property investment. Proximity to the nearest railway stations or motorway junctions really matters.
Choose the right property
Buying property for investment is not the same as buying a home. Tenants have different priorities to owner-occupiers. For example, gardens are not always attractive to tenants.
“Will you be expecting me to mow that?” is a question I have often been asked, usually followed by: “I’ll need you to supply a mower then. We haven’t got one”.
Thus, new build flats with public areas maintained by service contractors can make excellent investments.
Plan how you will manage your investment
On completion the owner of the property will be looking for good tenants who will pay the rent on time, keep the place nice, and won’t cause a nuisance.
That means the property investor will need to think about:
- Referencing
- Inventory
- Inspection
- Planning.
Referencing should always be done through a professional agency. That is it’s important to take up references on prospective tenants.
An inventory is essential, preferably a video inventory. Where problem tenants are involved anything other than visual evidence is just the owner’s word against theirs. Inspections and this type of evidence are essential.
Inspect regularly. I once saw a rental property where a leaking washing machine went unrepaired for 18 months. The kitchen floor beneath the machine was non-existent. It had just rotted away. Regular visits to the property will avoid this sort of problem.
Planning matters, too. When signing an Assured Shorthold Tenancy Agreement landlords should consider the end date of the agreement carefully. A six-month agreement that starts in the second half of June will end near Christmas, which is not an easy time to find new tenants. This could result in a void period, and lost income for the property owner.”
Selling to High Net Worth Investors
If you’re associated with the property market in any way what opportunities for selling to high net worth individuals do the issues dealt with by Mike present to you?
About the Guest Author:
Mike Beckley is an expert in property investment. Find out more about his work at Midas Property School
Follow Mike on Twitter at: http://twitter.com/MikeBeckley1
