Seven tips to help you start building a family property portfolio business

 

Vicki Wusche is author of ‘Property for the next Generation’ here are her tips to help you start creating a family property portfolio business.

1.    You don’t have to live where you own, you don’t have to own where you live.

If you cannot afford to buy your dream home in your dream area then how about buying a property in a cheaper area that you can afford and then using the property timizzerincome to help you rent your dream home in the perfect location. Who says you have to live in the property you own?

2.    Never sell a house – convert the mortgage and rent it out for a profit

If you need (or want) to move – don’t sell your property. Instead, explore the cost benefit of renting your property and moving to a more suitable property that fits your needs that maybe you don’t actually buy – you just rent.

As long as you check that you meet the local and legal requirements to rent a property (and here a letting agent’s advice is invaluable) you could save on estate agent fees incurred through selling and profit on the income through renting.

3.    Property investment is a sensible business decision that can help your family become more financially secure

Property investment is a professional and profitable business if undertaken with care and expert guidanceproperty portfolio timizzer 2. There is a lot of legislation and it changes all the time, however there are organisations like the NLA (National Landlords Association) and the Landlord Accreditation Scheme that can offer advice, guidance and education.

When you work out the interest you are earning on your savings compared to the interest that can be earned though property investment, especially if you buy outside of London where return on investment (ROI) can reach 10-20% (depending on the investment strategies used), it makes sense to explore what property investment can do for your family and your financial security.

4.    Save your family money and buy smaller properties outside of London for rental purposes and use the income to create the lifestyle you want.

Research by Santander states that four out of five young people cannot afford to buy without help from their parents.

Don’t let your children remain trapped at home. Rather than encouraging them to buy their own home, encourage them to buy an affordable rental property that will give an income so they live (rent) in their dream home.

In her book ‘Property for the Next Generation’ Vicki not only explains how she taught her daughter to buy her own home without any money from the bank of mum and dad. ‘It’s about buying where you can afford and not being wedded to the idea that you have to live in the property that you buy’ explains Vicki.

5.    Recognise that your children might not want your house when you pass on.

Young people are faced with growing technological change and with that new ways of working, and living. As parents we have grown up thinking that passing on our house to our children is a gift and a legacy. In fact it might well prove a burden when inheritance tax and costs of selling are taken into account.

Investing in property while your children are young and prices relatively low compared to future prices in 10 or 20 years when you children are actually ready to leave home seems to make sense. But where to buy? What university will they attend? These are misleading questions – instead invest in property in a location that makes financial sense and then hold on to the property for as long as the strategy and your personal circumstances dictate.

6.    Check everything, do your research and never hand over money to anyone in exchange for the promise of properties to come.

You might not have the skill or the time to identify where the hot spots and best return on your investment will be. And you may not be up to date on all the latest legislation. This is where the advice of a professional property sourcer can be useful. However be wary of “systems” or “clubs” that asked you to join a membership in order to access deals, and never handover money in return for a promise of properties in the future. Always do your homework, understand the nature of the investment, ask questions and get independent financial advice.

7. Start preparing now – don’t wait.

Vicki worked out that £150,000 in a pension (after 10 years of contributions) is only going to provide her family with £7,200 per annum. But by investing £150,000 wisely in property she can get between £1,400 and £2,400 net income per month. The income will start now and every month until retirement and then for years beyond, providing the properties are well managed.

By taking responsibility for your own financial future, getting good advice and doing your homework you can create more income for your family now and create a secure income for your retirement whenever you want to take it. The bonus of the extra family income might be to help your children leave home, or get on the property ladder through their own property portfolio, or fund another business idea.

Property investment can be a great business as long as you know the rules and comply with the law. Check out TheSourcersApprentice.com for free resources designed to help and support you.

About Vicki Wusche

Vicki Wusche has gone from single mother on limited income, to financially free with a property portfolio worth £2m, in just 20 months.  Vicki has been investing in property herself for many years and runs a successful business sourcing property for other investors and teaching people how to invest in property. She is author of three property investment books and has helped her daughter buy her own property using the techniques she teaches in her book ‘Property for the Next Generation’. See: www.PropertyForTheNextGeneration.com and www.VickiWusche.com

 Source: Panpathic Communications – Chantal@panpathic.com

About Chief Editor Middle East Region Yousef Sleiman Agha

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