Furnished or unfurnished - what’s the better option?

A crucial question for every property let is whether you should offer it to the market furnished or unfurnished. Whilst this depends on many factors such as who your target market is, we have found that on balance and in most cases, unfurnished is the better way to go.

In this article we will look at the different aspects to consider when making the decision how to let your property.

1.       What is included in a furnished let?

2.       Will I get more rent if my property is let furnished?

3.       Do tenants prefer a furnished property?

4.       Are there tax advantages when letting a property furnished?

5.       Can I claim money from the deposit if my tenants damage my furniture?

6.       Mistakes to avoid when furnishing a property.

7.       Conclusion

What is included in a furnished let?

First of all, let’s get clear about what ‘furnished’ actually means. It is generally expected that a furnished property has a bed and a wardrobe in the bedrooms, the lounge has a sofa and table and a dining room has some sort of table and chairs. That’s it at it’s most basic level. However, there is no prescribed standard for what must be included in a furnished property, so many landlords go to various degrees of including items. Whilst the above describes the minimum standard that should be achieved, at the upper end there is almost no limit to what you could include. I’d call that the AirBnB standard where you go as far as including a toaster, a kettle, cutlery and any imaginable item you can find at your Tesco Extra. Then of course, there is also ‘part-furnished’ where you might have a bed and wardrobe for one of the bedrooms or the lounge might just include one couch – you get the idea. Now with that out of the way, let’s get to the next crucial question.

Will I get more rent if my property is furnished?

Generally there is a small difference in rent that reflects the additional items provided in a furnished property. After all the tenants are getting ‘more’ in a furnished property. However, the amount is not really significant; we’re talking between £25 and £75 depending on the range and quality of items provided. Considering that even a basic level of furnishing can set you back by several thousand pounds it will take a long time to achieve any sort of pay back. Not to mention that you have to deal with van trips to Ikea to get everything in the first place. Then of course, items will have to be replaced in the course of the let. Mattresses, sofas and dining chairs all have a limited life span and even if your tenants treat these items well, you will have to factor in replacements after a few years or a few tenancies. My recommendation in regards to extra rent vs cost of furnishing is this: Don’t furnish your property to achieve a higher rent; let the tenant demand for furnished or unfurnished be the main decision driver for you.

Do tenants prefer a furnished or unfurnished property?

To best answer this question, it's important to recognize that tenant preferences can vary based on numerous factors including location, demographic, and individual circumstances.

In my experience as a letting agent, I've found that there's no one-size-fits-all answer. However, I can offer some insights.

Furnished properties often appeal to tenants seeking convenience and immediate comfort. These tenants might be students, young professionals, or those relocating for work, who prefer not to invest in furniture or move bulky items. Furnished properties can also attract short-term renters or those looking for temporary accomodation.

On the other hand, some tenants, particularly families or individuals with established households, may prefer unfurnished properties. They may have their own furniture and want the flexibility to personalize their living space according to their tastes. Additionally, unfurnished properties might appeal to long-term renters who prioritize lower rent costs over convenience to get a fully furnished place provided.

Ultimately, the key is understanding your target market and catering to their specific needs and preferences. Conducting market research and staying informed about local trends can help you make informed decisions about whether to offer furnished or unfurnished properties in your portfolio.

Are there tax advantages when letting a property furnished?

When it comes to letting a property furnished in the UK, there can indeed be some tax advantages to consider.

One advantage is the ability to claim tax relief on furnishings and equipment provided in the property. This can include items such as furniture, appliances, and even kitchenware. The "Wear and Tear Allowance," which used to allow landlords to deduct a percentage of their rental income for the replacement of furnishings, has been replaced by the "Replacement of Domestic Items Relief." This allows landlords to deduct the cost of replacing furnishings, appliances, and equipment in the property.

Moreover, furnished properties may qualify for a lower tax rate on rental income due to the "Furnished Holiday Lettings" (FHL) scheme. Properties meeting certain criteria under this scheme can benefit from favorable tax treatment, including potentially lower tax rates and eligibility for certain capital gains tax reliefs.

It's important to note that tax laws and regulations can be complex and subject to change, so seeking advice from a qualified tax professional or accountant is advisable to ensure compliance and to maximize potential tax benefits. By understanding and leveraging these tax advantages, landlords can optimize their rental income and investment returns.

Can I claim money from the deposit if my tenants damage my furniture?

As a landlord, you have the right to claim money from the deposit if your tenants cause damage to your furniture beyond reasonable wear and tear.

In the UK, tenants are typically required to pay a security deposit at the beginning of the tenancy, which serves as financial protection for landlords in case of damage to the property or furnishings. If your tenants have caused damage to your furniture, you can make a claim against the deposit to cover the cost of repairs or replacement.

However, it's important to note that the damage must be more than just normal wear and tear. Wear and tear refers to the gradual deterioration of furniture or other items due to ordinary daily use, which landlords are generally expected to cover themselves. Examples of damage that may justify a claim against the deposit include stains, tears, or breakages caused by negligence or misuse by the tenants.

Before making a claim, it's essential to document the damage thoroughly with photographs or written descriptions to provide evidence in case of dispute. Additionally, you should follow the proper procedures outlined in the tenancy agreement and relevant legislation regarding deposit protection and dispute resolution.

By understanding your rights and responsibilities as a landlord, you can effectively address and resolve issues of damage to your furniture while maintaining a positive and professional relationship with your tenants.

What are the advantages of letting furnished

When letting a furnished property, there are a few common pitfalls landlords need to steer clear of. One big mistake is not having a proper inventory done by an independent third-party clerk. A detailed inventory protects both landlord and tenant by documenting the condition and contents of the furnishings at move-in. Without it, disputes over missing or damaged items can easily arise at the end of the tenancy.

Another error is providing furnishings that are worn-out, damaged or of very poor quality. Remember, you are essentially selling a lifestyle and experience as well as just renting out space. Cheaply furnished properties rarely attract the best tenants. Invest in good quality basics like beds, sofas and appliances that will last.

Cleanliness is also crucial with furnished homes. Don't cut corners on professional cleaning between tenants. Nothing puts off prospective renters faster than grubby carpets, dusty surfaces and lingering odors from the previous occupants. Fresh, clean and welcoming is the way to go.

Finally, be mindful of personal tastes when choosing decor. Opt for neutral colors, minimal clutter and inoffensive artwork and accessories. You want your furnishings to have wide appeal rather than being too personalized to your own style preferences.

Summary

When deciding whether to let a property furnished or unfurnished, it's important to consider several factors. Tenant preferences play a big role - furnished rentals are very popular with students, young professionals, and anyone requiring flexibility and low upfront costs. However, some tenants prefer a blank canvas to make their own.

Tax advantages to furnishing are now very limited as the 10% "wear and tear" allowance has been phased out.

Speaking of costs, furnishing is a significant upfront investment but quality pieces can last for years. Factor in regular replacement of items that see heavy use like beds, sofas and appliances. Furnished properties also require more regular cleaning and inventory checks.

As covered previously, some key mistakes to avoid include providing substandard or unappealingly personalized furnishings, failing to have a proper third-party inventory, and neglecting cleanliness between tenants. Take care to create an inviting, neutral space.

Overall, furnished rentals can be the right choice for landlords willing to make the investment and manage them diligently. Consider your target tenants' needs to make the right choice.

Buying property off-plan

Buying off-plan can be a great buy-to-let strategy that can bring a number of practical and financial advantages. But it is not without risks, and it’s important to be aware of the process, the pros and the cons. In this article we’ll be covering all of this.

Develepment St. Ninians, Stirling

What does buying off-plan mean?

Buying a property off-plan means committing to purchase a property before the construction is complete or in some cases before it has even begun. You will be able to see your property on an architect’s drawing only and you can visit the location, but you cannot view the property.  You are required to pay a small deposit at the point of reservation and the balance falls due on completion of the build.

Persimmon development Stirling

Selecting a property

The developer will typically market their properties either directly or via an agent on the usual property websites like Rightmove, Zoopla or OnTheMarket. In some cases, there will be a site office which you can visit and look at plans, get a feel for the location and talk to the sales staff. If you are happy with the general location of the development it comes down to selecting a property type, its location on the development and the specification. There are many factors to consider here such as the size of bedrooms, orientation towards the sun etc. In many ways it is similar to the selection of a pre-owned property, so I will not cover all aspects here in detail. 

Are you able to finance the purchase?

If you are planning to finance your purchase via a mortgage then you should get a ‘decision in principle’ from your mortgage lender before committing to a purchase. We would recommend going via an independent mortgage broker who will be able to advise you about the best options for your specific situation. They have access to many lenders and their expertise can often get you a better rate than going to one lender directly. Having a mortgage decision in principle (DIP) will make you a more serious buyer in the eyes of the developer’s sales manager and could put you in a better position to negotiate on a deal. If you would like a recommendation for a mortgage lender then I’d be happy to recommend the Stirling Mortgage Shop. You can contact their team on 01786 449969.

Allanwater development Stirling

Reserving the property

Once you are happy to commit to the purchase it’s time to reserve your property. You will be asked to pay a small fee of between £500 and £2,000. This fee is usually non-refundable but will be taken off the purchase price when the balance is due. This fee is usually paid to the developer’s solicitor.

The conveyancing process

At this stage you should involve your solicitor / conveyancer. It is his/her job to look at the sale contract and liaise with your mortgage broker to ensure funds are available when they fall due. Once the property is completed contracts will be signed and keys are handed over.

Completion and snagging

With most new-builds you have to expect some level of snagging to be done. This usually involves you drawing up a list of items / defects that you want the builder to address before you are entirely satisfied with the handover of the property. If you feel that you are not entirely confident with the task then you can enlist the help of a building inspector. For example check out https://snagproscotland.com/
It can be a tedious task to get all items finished off by the developer as they are often working to their own agenda and once they are off-site it can be a battle of persistence to get them to come back and carry out repairs.

Allanwater development Stirling

Weighing up the pros and cons

Advantages of buying off-plan:

1. Attractive Price Incentives: The allure of securing a property at a discounted purchase price is a primary draw for off-plan enthusiasts. Developers often offer incentives to entice early buyers, ranging from reduced rates to exclusive add-ons. This advantage not only enables investors to secure a more favorable deal but also lays the foundation for a potentially lucrative return on investment.

2. Embracing the New: Investing in an off-plan property guarantees a pristine, untouched canvas to work with. With a brand-new structure, investors can revel in the modernity and elegance of their investment. Additionally, most off-plan properties come equipped with a generous 10-year builder's warranty, offering peace of mind and safeguarding your investment against unexpected issues.

3. Tailored to Your Tastes: The flexibility to choose from an array of styles, sizes, and locations empowers investors to curate a property that aligns seamlessly with their preferences and investment goals. Whether it's a chic urban apartment or a serene suburban villa, the off-plan approach accommodates a diverse range of needs.

4. Capitalizing on Appreciation: The unique timeline of off-plan investments often coincides with the property's development phase, allowing investors to potentially capitalize on value appreciation before even taking possession. As surrounding infrastructure and amenities improve over time, your property's worth might soar, translating to a favorable resale potential.

5. Personalized Touches: A distinctive feature of purchasing off-plan is the possibility to customize certain aspects of the property before construction concludes. From interior design nuances to choosing finishes and fixtures, investors can inject their property with a personal touch, enhancing its appeal and distinctiveness.

6. Ahead of the Curve: One of the most significant perks of an off-plan purchase is acquiring a property built to the latest building regulations and standards. This ensures your investment is aligned with modern construction practices, enhancing its durability and long-term viability.

7. Energy Efficiency Delivered: Increasing environmental consciousness has elevated the importance of energy-efficient properties. Off-plan investments often integrate the latest sustainable technologies and designs, leading to properties that are not just contemporary but also eco-friendly, potentially saving on operational costs and enhancing market desirability.

Allanwater develepment Stirling

Disadvantages of buying off-plan

1. Delays: Unexpected delays in the completion process can mean that your mortgage offer might have expired, but you are still legally committed to the purchase of the property. Pulling out at a late stage can mean that you will loose your deposit.

2. Quality issues: Since you can’t usually see the end product before the buld has been completed you might find that the end product is not as expected. At best you are left with a lot of snagging issues, at worst you are simply not getting the quality you were expecting.

3. Financial issues: There’s a risk that the builder goes bust during the construction period in which case you could potentially lose your deposit.

4. Market fluctuations: Depending on the length of the construction and your initial expectations it is possible that the end market value is lower than you initially expected.

5. Oversupply: With further new developments springing up around you a potential oversupply of similar properties could surpress the market rates for your property in terms of resale or rent.

6. Misleading discounts: Discounts and deals given by the builder might turn out to be more of a marketing trick than a real discount.

Persimmon Development Stirling

Conclusion

Delving into the world of off-plan property investment can offer substantial rewards for those who seek to diversify their portfolios intelligently. From financial incentives to customization, and the prospect of value appreciation during teh build phase, the benefits are undeniably enticing. As with any investment, meticulous research and due diligence are important, but adding an off-plan investment could be a useful addition to your property investment strategy.

Case study - assessing a buy-to-let opportunity

19 George Street, Dunblane - a three-bedroom ex-local authority mid-terraced house.

In this article we are going to look at an actual property and assess its suitability as a buy-to-let investment. We’ll be looking at the following aspects to judge how good an investment it is.

1.       Location

2.       Condition

3.       Financials

4.       Rentability

5.       Prospects for capital appreciation

6.       Health and Safety requirements

7.       Energy efficiency

8.       Mortgageability

9.       Pros and cons - conclusion

19 George Street has been on the market for a couple of weeks at the time of writing this article. It is a three-bedroom semi-detached house in central Dunblane. It has previously been let out and is now on the open market for sale. 

Let’s now look at the buy-to-let potential of this property.

Front view of 19 George Street, Dunblane

1. Location

The property is located near the very centre of Dunblane about 2 minutes’ walk from the train station and the local supermarkets Tesco and Marks & Spencer. George Street itself is made up of a mix of housing, many of them are ex-local authority, now in private ownership. There are flats and houses on George Street mainly built around the 1930ties. Curb appeal of the properties is limited and the general price level of in George Street is at the lower end of Dunblane’s properties.

2. Condition

A Home Report was carried out by DM Hall Chartered Surveyors in preparation for the sale. In Scotland Home Reports are a legal requirement for selling properties on the open market. They include a property survey, a mortgage valuation, an Energy Performance Certificate and a Seller’s Questionnaire. The survey rates the condition of the property on a scale of one to three broken down into several categories of the property. A ‘1’ rating signals no issues with the condition, ‘2’ highlights recommended maintenance to be carried out, whilst ‘3’ points to serious issues that need to be addressed urgently.

The survey in this case is relatively ‘clean’ with only ‘category one’ and ‘category two’ ratings. Recommended repairs that have been highlighted refer to roof maintenance, failed double glazed units, boundary walls, and decorative repairs to ceilings.

An in-person inspection that we have carried out identified also a number of decorative repairs that are needed such as replacement carpets as well as internal and external decoration.

One more costly item for consideration is the kitchen. Whilst functional, it is not very attractive and of an age that would require replacement.  

Overall, the property needs to be made more attractive for the rental market or it will struggle to attract good tenants and achieve the required rent to make this a financially viable option.

Current kitchen at 19 George Street in need of an upgrade

3. Financials

At the time of writing, the property is on the open market at ‘Offers over’ £170,000  and the home report gives a market valuation of £175,000. There is a steady level of interest and five viewings have taken place within the first week of advertising.

To purchase this property I assume that you would have to bid £175,000.
 
The following table shows my financial assessment of it:

Financials 19 Goerge Street

The key figures here to look at are the net yield and Return on your investment. This purchase requires quite a bit of cash available and the additional cost of repairs (carpets, decoration and kitchen) keep the ROI well below 10 % which in many comparable properties could be achieved. The rent is maxed out at £925 and the calculation assumes that you self-manage this property with no letting agent fees taken into account. The monthly net cash flow is still relatively healthy and should mortgage rates drop to previous levels, i.e. 3% then this property would cash flow around £600 per month and achieve an ROI of about 10%

Alternatively, if you could keep your repairs to about £5,000 then your monthly cash flow would not be affected but the ROI would jump to 9%.

To make a full judgement on the financial viability of this option you would have to compare it to other opportunities in the current market and draw conclusion from there.

4. Rentability

A key question to answer is how easy it is to let this property. Is there demand for 3 bedroom houses in Dunblane in this location at the price that this property would be advertised.
From local market knowledge we are clear that there is sufficient demand for this kind of home. At the time of writing there are only two properties advertised to rent in Dunblane. One is a bedroom bungalow for £660 and the other a two-bedroom flat for £750 pcm. Since Dunblane is in a great central location, has a good schools and generally good amenities we would see no problem finding suitable tenants for this property.

5. Prospects for capital appreciation

Whilst the area in and around Dunblane has seen strong market growth over the last 3-5 years I see the prospects for capital appreciation with this property limited. In line with other streets that are mainly made up of ex- local authority housing we have seen the prospects for capital growth much slower than with other types of more modern properties and in more desirable locations. Whilst the monthly cash flow could be reasonably strong (if mortgage rates were to come down) this is not a strong contender for capital growth.

6. Health and Safety requirements

This property has previously been let out and all safety certificates are in place. For properties in Scotland the following are required before a tenancy can begin:

a) Energy Performance Certificate (EPC)
b) Electrical Installation and Condition Report (EICR)
c) Portable Appliance Test (PAT)
d) Landlord Gas Safety Certificate (LLGSC)
e) Carbon monoxide detector
f) Smoke and heat detectors
g) Legionnaires Disease Risk Assessment (LDRA)

It would be advisable to renew the Legionnaires Disease Risk Assessment before the next occupation. Other than that, no other requirements need to be renewed and no further cost would need to be incurred.

7. Energy efficiency

The energy efficiency rating of this property has been classified as ‘C – 69. The average rating for EPCs in Scotland is band D (61). This property’s rating is future-proof as from 2025 all properties that are let out need to achieve a C rating. There are no concerns in this area. No improvements need to be made and no further cost is anticipated.

8. Mortgageability

The current home report states that the property is suitable for mortgage lending and there are no factors that will restrict lending. The home report value of £175,000 will determine the mortgage amount that can be borrowed. On a typical mortgage of 25% deposit and 75% lending you will be able to borrow £131,250. The rest of the required funds including any part of the purchase price that exceeds the HR value (or refurb cost) need to come from your own funds. Based on a current indicative mortgage rate of 5% (interest only) the monthly cost will be £546.87.

9. Pro and cons – conclusion

19 George Street would make a relatively ‘easy’ buy to let investment for a number of reasons: It’s in a popular town in a central location to schools and amenities. Whilst there are some cost savings to be had as all safety certificates are in place, it does require a fairly significant spend (~£15k) to make it presentable for the rental market. At a projected gross yield of 6.3% and net yield of 2.5% the financials are not very strong. The Return on investment of 7.3% and the limited prospects for capital growth make this in my mind only an average buy-to-let investment.

You might find though that this article can be very helpful as a reference point for your own investment assessment of a property. See how your potential purchase scores on the above criteria and see if you find a better opportunity.

If you would like help assessing a buy-to-let investment or you would like our help to find a good one then please do get in touch on 01786 821012 and we’ll be glad to help.

Flats vs houses - what is the better option?

Flats are a great investment to start with and in many aspects the easier option to have in your portfolio. In this post I will outline the pros and cons of flats versus houses for your investment strategy. You will find though that a mix between these two property types might just be the best approach.

First off, let’s look at the advantages of buying flats.

1.       Purchase cost

Let’s assume you want to start out building a property portfolio and you have saved up for your first deposit. You’ve started to look at Rightmove listings and see what you can afford to buy. You’ll find that in general a two-bedroom flat tends to be cheaper than a two-bedroom house. This is a bit of a generalisation as there will be flats that are more expensive than houses that offer the same number of bedrooms but in general comparable flats tend to be cheaper. The reason of course is that with a flat you buy ‘less’ property, you essentially buy part of a building and its plot rather than the whole property. So, from a purchase cost aspect, flats tend to be the more starter-friendly option.

2.       Maintenance and repairs

In general, flats tend to come with fewer maintenance issues. That’s simply the case because many areas of a property are common and therefore not the individual property owner’s responsibility. All potential issues with the roof, the fabric of the building, the common parts such as entrances and stairwells as well as the garden, if there is one, fall under a common responsibility and are not your concern. On the flip side, damage can be caused by other residents. You could for example be of the receiving end of a leaking pipe from the property above you. And whilst you don’t have to deal with a lot of the common repairs and maintenance issues you will most likely be responsible for financial contributions for these common items. For many properties there will be an appointed factor who organises common repairs and a fee will be paid to them, first for their work and then, secondly for the instructed contractors who have carried out the maintenance. Examples here are clearing of gutters, roof repairs, garden upkeep and redecoration of common stairwells.

3.       Yields and profitability

Flats usually provide a better rental yield, especially in city center locations where land is in high demand. It can be tricky though to make generalisations in this regard as there is of course such a variety of purchase prices, sizes, locations and standards of properties. Having said that, if you were to compare some fairly similar properties and looked at it purely from a yield perspective, then the flat would usually be the better option.

Let’s look at an example:

Flat purchase price: £150,000
Rent: £750 pcm
Gross yield: 6.0%

House purchase £220,000
Rent: £950
Gross yield: 5.2%

We have now only looked at gross yields and have not taken into account any costs such as management fees, factor charges and maintenance. Depending on the actual deal you can get and all costs involved my recommendation would be to compare net yields on a property to property basis and not make your investment decision with the notion that flats always provide a better yield.

4.       Purchase price

Flats are normally cheaper to buy, simply because you buy less ground and ‘less property’. And in this regard flats are often the more investor-friendly option. You need less capital to get started, e.g. £30,000 for a flat deposit vs. £50,000 for a house deposit. It will allow you to purchase a second property quicker and therefore diversify your growing portfolio quicker.

5.       What do tenants want

In city centre locations there is a clear preference for flats. Ground tends to be more expensive and in high demand and more people live in flats rather than houses. However, if you invest in smaller towns or villages, then houses are often the more attractive option as they tend to attract families who want to settle and rent in the area. A strong demand for flats in city centre locations does not only mean your property will be easy to rent out, it will also more likely lead to capital appreciation of your property which of course will be an important aspect of your property investment strategy too.

Having made the case for flats more or less so far, I want to list out all the advantages of houses too, so you will be able to consider these in your investment decision.

 Pro houses:

·       In complete control of the property

Unlike with flats, you are in complete control with your property when investing in a house. Of course, you will likely still have neighbours and council rules to abide by, but in general you don’t have to seek someone else’s permission before instructing works such as gutter clearing, roof repairs or external painting.

·       No factor fees

When calculating the profitability of your investment you will have to take into account all costs associated with the upkeep of your property. With houses there are typically no factor fees to pay. The flip side of course is that you will have to pay for all repairs and maintenance yourself, but at least you don’t pay anyone a fee to manage these repairs and as said above you decide which repairs should be carried out by whom.

·       No risk from damage through other tenants

I have lost count of the number of incidents where a leak from one flat into another has caused significant damage that had to be addressed with urgency and at significant cost. It is simply one of the risks that has an increased likelihood in flats. That’s of course not to say that in a house you can’t have a leak from your upstairs bathroom into the ground floor living room, but you are much more in control of these potential accidents and the way you can address a repair.

·       More attractive to families

I generally find that houses, even of they have just a little bit of outside space are more attractive to families with children. So, it comes down to your target market. If you are in an area with good schools and you are looking to let to a family, then a house can be the better option to let.

·       Tenants tend to stay longer

This point goes along with the previous one. Tenants in houses have a tendency to stay longer. It applies particularly to families. During the children’s school years most parents like the stability of staying in one place where they not only benefit from their choice of education but also from the social network they have built with the children such as clubs, friends and neighbours.

·       Some tenants like the higher level of privacy you get with a house.

Privacy is another consideration that can play a role for your tenants. Especially those with noise children might prefer the advantages of a house over flats where you would have to be more mindful of potential disturbing your neighbours.

·       Opportunity to extend into loft or outside

With a flat your options to extend or reconfigure can be quite limited whereas with a house you have more flexibility. Some properties can easily be extended into the attic which can give you a couple of extra bedrooms or they might benefit from a generous enough plot that lends itself to an extension. Either way, where land is in high demand, extending a property can be a good way to generate extra living space and value for your property. If this is a consideration for you then you might want to consider investing in a house.

·       More potential for capital growth

On average the potential for capital appreciation is higher with houses compared to flats. The increase in value is of course only one of the financial indicators that you might want to factor into your investment decision. Maybe the rental yield is more important for you as you are looking for immediate cash flow rather than capital growth. However, it is important to bear in mind that your prospects for investment growth are higher with houses.

·       No restrictive covenants such as no pets

Another tick in the box for houses is the fact that there are no restrictive covenants or ‘house rules’. Many flats have restrictions such as not being allowed to keep pets or only parking in your one designated parking space. With houses though you’re mostly in control and you can make your own rules for your tenants.

In summary, I would recommend the following strategy:
Start your investment journey with the purchase of a flat, but in the medium to long-term, diversify your portfolio to include both flats and houses and you can benefit from their respective advantages as described in this article.

Landlord insurance - what is it and do you really need it?

Insurance is not most people’s favourite topic but when it comes to letting out your property it is crucial to understand what is legally required and what is most advisable in terms of any insurance cover you might want to arrange.

Landlord insurance is no legal requirement, but your mortgage lender will insist that you have it. Costs and liabilities associated with damage to your property or liability to a tenant can quickly add up to thousands of pounds, so we strongly recommend landlord insurance for every landlord.

1.       What is landlord insurance
Landlord insurance is a specific type of insurance that is used to cover for all risks associated with the letting of a residential property. It is to a large extend not different to a normal buildings and contents insurance but usually includes those two elements as well as further areas that are specific to the risk that comes with renting out a property.

2.       Do I need landlord insurance
It is not a legal requirement to have landlord insurance, but you will find that all mortgage lenders will require you to have landlord insurance if you have financed your buy-to-let property via a mortgage. If you own your property outright or at least you have not used a mortgage lender to get finance, then you could decide not to have landlord insurance. However, expenses and claims that would normally be covered by your landlord insurance can quickly mount up and we feel it is advisable to have landlord insurance regardless of how you have financed your property investment.

3.       What does landlord insurance cover
Landlord insurance is an umbrella policy and covers building insurance, content insurance, landlord liability, legal expenses and sometimes additional risk factors. There is also the option to include rent guarantee insurance which often costs as much as the main part of the insurance, but it covers you in case your tenants are unable or unwilling to pay their rent.

4.       Is landlord insurance more expensive
As landlord insurance covers you for more risks than just your ordinary homeowner’s insurance you should expect to pay more. An essential part of this insurance is to cover the liability that comes with the risks of having a tenant living in your property. If for example your tenant injures himself or herself due to a faulty piece of equipment that you have provided then your insurer will cover that risk. As this type of insurance cover is more risky than just your buildings or contents insurance your insurer will charge a premium for this product. Expect to pay about 25% more than for an ordinary homeowner’s insurance cover.

5.       Do you need landlord insurance when renting to a friend or family

It’s understandable ot be tempted ot save money here if you are renting your property to a friend or family member. After all they are very unlikely to sue you for any damages. But there are two reasons to play this by book and arrange insurance even if your tenant is a friend or member of your family. Firstly, your mortgage lender will most certainly require that your property is insured in case any liability is coming your way. Secondly, landlord insurance also covers you for things like rehoming a tenant if the property becomes uninhabitable due to flood or fire. The cost for housing your friend elsewhere whilst you might have ot refurbish your property after a roof leak could quickly mount up and, friend or not, you will be glad that these costs are paid for by your insurance.
There is also the risk that your tenant’s visitors could sue you if your property is found to be responsible for causing them harm. A simple trip over a loose paving stone could lead to high medical bills and compensation claims that you could be held responsible for. In summary, friend, family or just a normal unrelated tenant – landlord insurance is a must.

6.       Do I need landlord insurance if I live in the property?

A typical homeowners insurance policy will not cover you if you have a lodger in your property. In the first place it is advisable to ask your mortgage lender if you are allowed to have a lodger under your current lending product. They will then also advise you that you need landlord insurance for your property. Speak to your insurance broker and ask for a specific policy that covers all risks associated with having a lodger in your property.

7.       Does landlord insurance include buildings insurance?

Many landlord insurance products include buildings insurance as part of their policy. As mentioned above, you will definitely need the buildings cover if your property is mortgaged. It’s the lender’s way of making sure that the secured asset (=your property) is protected and in case of flood, fire and other damage can be reinstated. For some properties, typically in large blocks of flats the factoring company will organise the building cover on behalf of all owners. Getting building cover for a large number of units can be more cost-effective if done under one policy, so factors are often tasked with this. If this is the case, make sure to exclude building insurance from your landlord policy so you are not paying twice for the same cover.

8.       Does landlord insurance pay if the tenant is in arears?

Many insurance companies offer a so-called rent guarantee insurance which covers any unpaid rent. However, there will be strict conditions attached to these policies such as successful credit checks the tenants must have asked for taking up the lease. There will be further terms and conditions but specify when the cover kicks in, how quickly the insurer might payout and for how long they will cover if your tenant doesn't pay their rent. This rent guarantee insurance is an addition to the usual landlord insurance and will cost you in the region of £200 to £300 per year but also a largely depends on the level of rent that you are insuring. Make sure to compare quotes The actual cover on offer. In our experience only a small number of landlords take out rent guarantee insurance however if it is vital for you to receive your rent then it might well be worth the expense which is also tax deductible.

9.       Who provides landlord insurance?

Most mainstream insurance companies have a landlord insurance product in their range and if you half at your property in short in the past with a particular company then it might be worth checking if they can provide landlord insurance. This can often apply if you have used your property as a private residence and then converted it into a buy to let property. You might also want to contact one of your current insurance companies so that you can pool number of policies under one umbrella. We have found that Alan Boswell provides an excellent service, and they have a price guarantee under which they promise to beat any comparable quote from another insurer. Their products are very flexible in regard to what cover you want to sign up for and of course they are very experienced with any landlord insurance related questions.

How to be a great landlord

The question of how to be a great landlord is an important one. It not only makes sense in terms of providing a great service to tenants but also to optimise the financial return of your property investment.

1. Carry out repairs quickly

The first and most important point has to be in relation to repairs. If something needs fixing in your property, your tenants rely on you to address the issue. Apart from minor things that clearly fall under your tenant’s responsibility, like changing lightbulbs, your tenants rely very much on you to address the issue at hand. As per most tenancy agreements tenants are not allowed to address maintenance issues and it is your obligation to address maintenance issues whether small or large. That means that your tenants rely on you to action any repairs that your tenants have raised with you. It ranks amongst the most frustrating issues for tenants if their landlords either ignore repair requests or deal with them slowly. It is therefore important that you have reliable contractors at your disposal that can act quickly when required. Make it a priority to get things fixed if they are broken and don’t make your tenants beg you to sort their maintenance issue.

2. Don’t be greedy with your rents

Clearly, most landlords want to get the best possible return on their investment and the achievable rent is a key factor in that calculation. Before setting your rent, do your research. If you have an agent, ask them for what the current market rent is for similar properties. You can also do your own research by looking at what rent comparable properties are advertised at on rightmove or other property portals. Don’t forget to select the ‘Let Agreed Properties’ option when looking at the listing. Not only will this give you a bigger pool of properties to compare to, it will also show which properties have already been let. In most cases the advertised price is the price that is actually agreed between tenant and landlord.

Trying to get a rent at an inflated level is not only greedy but also can lead to longer advertising times and fewer applications for your property. In extreme cases your tenants might jump ship sooner than hoped for when they find something cheaper. Don’t forget that you are in competition with other landlords and their properties. If you price yourself out of the market, you make less rental income than with a well-pitched rent that attracts good long-term tenants.

3. Keep in touch and communicate well with your tenants

The key point here is to be approachable and respond quickly to questions from your tenants. You don’t want your tenants to be anxious about approaching you if something breaks. It’s always better to fix something early rather than finding out late when things have gone worse (think leaks!). Make sure you have given your tenants your mobile number, email address and alternative methods of contact in case you unavailable.

4. Allow for reasonable requests

Over the years of letting properties I have received all weird and wonderful requests from tenants. Whilst some of them are strange and have to be turned down, others are worth considering. After all tenants make requests for alteration and customisations because they want to make the property their home. And when they do that it typically means they want to stay and are not plotting their next home move. All the better for you and your uninterrupted rent income.

I have found that these are the most common request:

- Paint the property internally

- Install a sky dish

- Put up a shed or similar structure in the garden

- Hang a wall mounted TV

- Hang mirrors and pictures

- Paint internal doors

- Allow a pet

- Allow additional people to move in

- Connect their own appliances instead of the provided ones (e.g. washing machine)

This list is certainly not exhaustive but gives you a good flavour of what you might expect from your tenants. I any case, weigh up the pros and cons, see what you can do to mitigate any risks and then make sure you record whatever you have agreed in writing so there are no misunderstanding further down the line.

5. Consider pets

For people pets are part of the family and your tenants are no different. One of the most common requests we get is the one for a pet to be taken into the property. You might have good reasons for not wanting a large dog or young kittens in your property but there are ways to mitigate any potential damage that might occur. You should definitely make a pet addendum to your tenancy agreement and potentially take an extra safety deposit that could be used to remedy any damages that a pet has caused. A strict no to any pet request from your tenants can often be interpreted as a harsh no. Consider carefully what damage could occur and then discuss with your tenants what they have in mind and what your concerns might be. There is certainly a variety of pets like hamsters, Guinea pigs and other small, caged animals that usually don't cause any issues at all. When it comes to dogs and cats though, give the request careful consideration and allow the pet to move in with the right precautions being taken. Your tenants, and their kids, we love you for it and might stay for a while longer than they otherwise would.

6. Stay on top of legislation

Renting out a property comes with lots of regulations and landlord obligations. From landlord gas safety checks to electrical safety and fire prevention, it is your legal obligation as a landlord to stay on top of these regulations. Not only is it crucial the two stay legally compliant it is also imperative to keep your tenants safe. Landlords have a duty of care and sometimes it can seem quite onerous staying on top of the ever-changing legislation and regulations. If you have engaged a letting agent to manage the property on your behalf, then hopefully they will do a good job of staying on top of things and keeping you updated. However, you cannot abdicate your responsibility of having illegally compliant property to an agent. The buck stops with you! It is also a good idea to be a member of a landlord organisation such as the Scottish Association of Landlords [SAL]. As a member of a landlord organisation, you will benefit from legal updates that will be published in magazines or e-newsletters. Many landlords also find it helpful to attend in person events where best practise and legal updates can be discussed.

7. Give helpful property maintenance advice

Bearing in mind that many tenants are not experts in maintaining properties, it makes sense to provide them with helpful advice for the most common issues that occur in private rented properties. High on the list are thing such as:

- how to avoid damp and condensation

- how to prevent pipes from freezing

- how to secure the property when away for extended periods of time

- what insurance might be required for tenants

- how to test smoke, heat and CO alarms

This is only a small list – consider incorporating this and other helpful advice into a welcome pack that tenants can keep and refer back to when needed. You don’t need to babysit your tenants but providing tenants with useful practical information really is good practice.

8. Look after your property and carry out routine maintenance and upgrades

A common complaint from tenants is directed at landlords who don’t maintain their properties on a regular basis and at worst let their property fall into disrepair. As a landlord it can be easy to ‘forget’ about the routine maintenance and upgrades in a rental property. After all, if you don’t see your property regularly it is easy to be unaware of problems developing or things starting to wear out and look tired. Regular property inspection should help you to flag up what upgrades might be required next. A planned maintenance programme is useful too. It doesn’t need to be to elaborate ore technical. A simple checklist that details when and how often you want to action routine maintenance or upgrades will do the trick. Examples here are, every year in November I will arrange for gutter clearing at my property or every five years I will redecorate high traffic areas in all rooms. Tenants will appreciate you keeping the property well looked-after and it is certainly in your interest too to have a well-maintained property. As you will know ‘A stitch in time saves nine’. So, a late autumn gutter clearance for example will help the property cope with heavy rainfalls and will protect it from water blockages that could damage the integrity of the building.

9. Have a repair fund available

 it is expected that as a landlord you have a pot of money available so that when repairs are required for your property they can be carried out without undue delay. Of course, like in your own home, he never know when disaster strikes and a repair is needed. Some repairs might of course be covered by your landlord insurance {link} so if there is for example a flood into your property, then your insurer should hopefully cover the expense. However, delays can occur when dealing with insurers and some repairs like a boiler breakdown I'm most likely not covered. They will then need you to dip into your repair phones. Murphy's law of course is always in action, so be prepared for multiple repairs to be required at the same time or if you have several properties you might be very quiet to carry out repairs in all of them around the same time full time.

10. Keep a distance

Your tenants have a right of quiet enjoyment of their home. Yes, it is your property but it is the tenants home and an overly keen landlord who likes to drop in or keep in touch more than required can be overbearing for your tenants. Once it is a good idea to keep a friendly relationship with your tenants you don't want to go over the top and annoy them. we have found that it's mostly local landlords or first-time landlords who feel the temptation to be a little too close to their tenants and their beloved property investment. Don't be that landlord; keep a distance but be there if your tenants need you. Make sure that your tenants can easily get hold of you if required and that they have all your contact details.

11. Maintaining a good relationship

Sometimes overlooked, but nevertheless quite helpful is to maintain a good relationship with your tenants. I have seen landlords who put a bottle of wine in the fridge for the tenants’ moving-in day, send birthday cards or drop over a little gift for Christmas. Of course, none of this is required or even expected by most tenants and that's exactly what makes it such a nice thing to do. It builds a level of goodwill and helps to maintain a relationship that allows for small disagreement and bumps along the road to be smoothed out much easier than otherwise possible.

12. Be professional

Acting in a professional manner as a landlord and presenting a professional appearance can often be underestimated. Consider that letting out a property is a business and any dealings in relation to this business should reflect your professional approach to it. This shows in the way you communicate with your tenants, contractors, and authorities such as the local council. If you want to convey that you will be a good responsible landlord, it goes a long way to show this in your professionalism. Turning up to in jour joggers and baseball cap to a viewing and responding late or unprofessionally to tenant communication will likely detract from the impression you would want to convey and ultimately from the success of your business. I am not saying you have to be suited an booted to meet your tenants, but first impressions do form opinions, so be mindful what impression you are conveying.

The 18-year property cycle

What is the 18-year property cycle?

In simple terms, the 18-year property cycle is a concept that suggests the property market will boom, then be followed by a crash every 18 years - give or take a little. As far as we can tell, the economist Homer Hoyt was the first to identify this cycle and another economist called Fred Harrison wrote about it in his book “Boom Bust”, predicting a fall in 2007/2008.  The UK suffered record drops in house prices during that time and even the harshest cynics had to concede that there may be something in this theory. Harrison's book goes on to trace the same cycle over hundreds of years with surprising accuracy.

Why is the 18-year property cycle important?

The property market, like any other market, can be unpredictable and reliant on many factors. For example, property values in some regions of the UK have suffered a slight dip due to ongoing political uncertainty, especially in London. So anything that helps us predict the unpredictable must be worth its weight in gold, right?

Some people will argue that the 18-year cycle isn't relevant because the property market isn't as unstable as many other markets - hence the phrase ‘safe as houses’. But no investment is without risk, and merely leaving your money tied up until prices rise again isn't a strategy that everyone can afford. Between the lowest point to the highest, property values will see plenty of ups and downs. Whilst the 18-year property cycle won't tell you the best time to invest or sell, what it can do is to help you avoid the worst time to invest or sell, and that's why it's important. Think of it as limiting risk, not completely removing it. Even if it's not an exact science, having a basic template of how the market will act can alter your decision-making.

How does the 18-year property cycle work?

It starts with why the property market can be considered unstable. According to Fred Harrison, it's not the housing market that causes instability: it's the land market. Land for building new homes is in limited supply, which means we can't make more of it. While the world's landmass remains the same, the population continues to grow, in turn increasing the demand for housing and the need for land. Markets typically fluctuate due to supply & demand: supply is increased when demand is high, and prices then balance out. When supply can't be improved, property values boom, and banks lend more against rising asset values, supporting the upward trajectory. That gives us what Harrison calls the ‘Winners Curse’ part of the cycle, or the highest point. Only a crash can bring land/property values back down to earth, bringing us to the end of the cycle.

The whole 18-year property cycle has some distinct phases: the recovery phase, the explosive phase, and the recession phase.

Recovery Phase: Years 1 - 7

The recovery phase, as the name suggests, is when the market starts to recover from the previous crash. Experienced investors look at this period as an opportunity to buy cheap and ride out the storm for long-term gain. Low property prices are even more attractive to buyers because the average rent will stay the same. So, for example, a property that would previously provide a 6% yield can easily give a 9% yield because of the lower purchase price. First-time buyers, who perhaps currently rent, might also be attracted by the lower sale prices and might take advantage of Help To Buy schemes. However, for other buyers, banks are far less eager to grant mortgages in this phase while they recover from excessive lending during the last boom.

As people start to invest in property more and trust in the market begins to return, you see a slow but steady increase in property value. At the tail end of the recovery phase, the property market then experiences something called the mid-cycle dip. This is a short period when property values drop slightly before coming back up early in the explosive phase. This dip happens when investors who bought early start to sell for short-term profits.

Explosive Phase: Years 7 - 14

Now safely out of the recovery phase, things are clearly on the up. Everything is in full swing: banks are lending again, new projects are being built and people are buying. Instead of being nervous about losing money, people are now worried about missing out. Property values are rising so fast that people are scared if they don't buy now, their dream home will soon be unattainable. Or they are so convinced that prices will keep rising that they want in on the profits. While this buying frenzy is going on, the investors who bought when prices were low are now selling to make a profit.

As mentioned before, the ‘Winner's Curse’ now comes into effect, where despite the fact that prices are now at the highest point in the entire cycle and are heading towards a huge drop, buyers still rush to purchase due to fear of missing out and make emotionally charged bids on properties, which results in them paying more than they should.  

Recession Phase: Years 14 - 18

This phase is a time to panic for some, but an excellent opportunity for others. Despite assurances that the most recent boom is the one to last, a recession is always around the corner. If there wasn't a recession, and prices continued to rise much faster than the average wage, very few people in the grand scheme of things would be property owners.

Buyers experiencing their first significant slump will be understandably nervous to see their investment plummet. So nervous, that some will look to sell at rock bottom prices to cut their losses. There are many reasons people would consider selling at this point other than sheer panic. For example, if someone bought to sell, expecting a short-term significant return, they may find themselves fighting a losing battle to pay bills when the recession hits. In that situation, waiting for the recovery isn't always an option.

The result of people selling up and trying to salvage what they can is that prices continue to drop. To add to the bleak market landscape, banks may make the headlines as they struggle. The more widespread panic there is, the less negotiating power the seller has, and desperation takes over. For many it becomes a choice between sinking with the ship or grabbing anything they can. However, many investors wait to capitalize when prices hit their lowest point because they know that every recession is followed by a recovery, and the cycle starts all over again. Ideally, you want to buy when the recession comes or early in the recovery phase but don't be too specific with timing, trying to squeeze every last penny out of a deal, or you might miss the boat.

What phase are we in now?

Given that the last major recession was in 2008/9, that means we are now in the explosive phase. According to the 18-year property cycle, that also means the next recession is expected around 2026 - 2027.

Due to factors like Brexit, some localised UK property markets may still be experiencing a slight dip before rising again. 

How does it affect the Scottish property market?

According to the latest UK Government House Price Index, house sales in Scotland have decreased by 13.5% in the last year. Despite this drop in sales, property prices have continued to rise faster than in the rest of the UK. Average property prices in Scotland have seen a yearly growth of 1.6%, compared to an annual UK growth of 1.3%. House prices in Scotland have grown faster than the UK average every month since December 2017.

How can you profit from the cycle?

 There is no sure way to buy and sell at precisely the right time, every time. As history shows, the cycle lasts an average of 18 years, but in reality, that could mean 16 years or 20 years: it is not an exact science. Even experienced investors don't know when prices are at their absolute highest and lowest: they make educated decisions with the cycle in mind. No housing boom will last forever and every recession will have a recovery; the main thing you should take from it is not to buy or sell at the worst possible time. This knowledge should also prevent you from over-stretching yourself with a purchase and being forced to sell at the wrong time.

Don't rely on tabloid fanfare or scaremongering to form your strategy. The media's job is to report the news, but it's also to sell newspapers and advertising space. If you listen to the tabloids, every boom will last forever, and every recession is the end of the world – after all, drama sells! As an investor, you need to remain focused on facts.

Conclusion

If you read four articles on the 18-year property cycle, you'd probably get two positive opinions and two negative ones. Our take on it is that history doesn't lie: you can't argue with facts. Now, we can't tell you that the cycle will exist forever but as of right now, we don't see any reason not to take advantage of this knowledge.

Top 10 Tips for a successful Property Viewing

When it comes to looking for your next home, or maybe even your next buy-to-let investment, the prospect of viewings can be both exciting and exhausting. There is a lot of detailed information to take in, and oftentimes emotions can distract us from staying focussed and being objective. This is why it is important that you make yourself aware of some key aspects of consideration before scheduling your first viewing - which will help to make the whole experience more enjoyable, and ensure that you come away with all the facts you really need.

1. Use a Checklist

When viewing a property, always take a detailed checklist, so that you can keep track of all the questions you need to ask, and all the areas of the property that you will need to inspect. By referring to these as you go along, you can feel confident that you’ll be making an informed decision and remaining focussed throughout the process.

2. Consider the Condition of the Property

Buying a property is one of the biggest investments you will make in your life, so it important not to get hung-up on superficial factors such as the current paint colour in the living room, when really you should be focussed on the health and structure of the property. With this in mind, here are some key features to keep an eye on, which if not properly maintained can be costly to fix!

The Overall Structure: Keep an eye out for significant cracks on the walls, both inside and out. If you spot any, ask the property owner or the estate agent for more details. If you have access to the home report, these cracks should have already been addressed. If not, ensure that you get a chartered surveyor to investigate these thoroughly, as they are well trained to pick up on critical issues such as these.

The Roof: Replacing a roof can be costly; especially as modern roofs tend to have a shorter life expectancy of around 15-25 years. Take note of any lose tiles or visible cracks. Also, it is important that you ask what materials are used, as some are more durable than others.

Windows: Be vigilant when looking for rotting wood, stiff handles, and gaps in the framework. Any condensation between double glazed windowpanes means that they are in poor condition. If the windows appear to be newly installed, ask to see any certification or guarantees to ensure that they have been fitted by a credible company.

Plumbing: Turn on the shower, bath and other taps to check the water pressure level. Check that the heating system is efficient, cost effective and up to date. Lastly, look at pipes to see what condition they’re in and whether they meet current regulations, or if they’ll need to be ripped out!

Damp: Damp is a common problem which is easy to avoid and expensive to amend. Key signs which you should look out for are dark patches or water marks, a mouldy smell, crumbling plaster and cracks in the walls or ceiling.

3. Understand Land Agreements

Ensure that you fully understand what land is associated with the property, from parking spaces to the specific boundaries of the garden. Is there scope, both physically and legally, for any potential developments you are considering? It is better to make sure that you are fully aware of what land belongs to the property and what you are able to do with it, before you get your hopes up and find out that your development plans are simply not possible.

4. Storage Space

Sufficient and convenient storage space is essential in any home. Whether you need a place to store Christmas decorations, children’s toys or linen, it is important that you have ample internal storage. When looking at properties with garden space, take note of whether there are pre-existing storage options outside, or a place to erect a shed, for any lawnmowers, bikes or garden furniture which may need to be protected from the elements.

5. Are the Rooms the Right Size?

It is easy to get caught up in the ‘feel’ of a property, to get distracted by bay windows and pretty views. However, it is crucial that the property fit your needs – and your furniture! Will your corner sofa fit in the living room? Will you even be able to get it through the door? The kitchen may aesthetically be your style, but is it big enough to accommodate the island you’ve always dreamed of? Living in tight quarters can be a nightmare, so make sure there is enough space for you and your family – and a little extra wriggle room always helps too.

6. How Well Will the Property Capture Heat & Light?

It is important to consider the direction of the property when it comes to maximising natural light and minimising heating costs. South-facing properties are ideal as they capture the most light and heat on a day-to-ay basis. Of course, not every window in your house will face the same direction, so think about how much sun you really want coming into your bedroom or your living room. You also need to consider any obstacles such as trees and surrounding building which may restrict warmth and light from reaching particular rooms.

7. Will Noise be a Problem?

There is little worse than buying your dream home, then finding out that you can constantly hear your new neighbours through the walls or distracting road noises at night time. Perhaps the stairs are squeaky or nearby church bells ring once an hour. Where you can, view the property at different times of day to see what kinds of noises there are around the property, and carefully consider if you could live with those which are unavoidable.

8. Take a Tour of the Neighbourhood

Go for a drive or take a walk around the neighbourhood to see whether you feel positively about the area and the other people living in it. By looking both during the day and night, you can gauge aspects of noise pollution, general cleanliness, local amenities and see whether you feel an overall positive vibe!

9. Paperwork

Relevant documents may include the property’s energy performance certificate, a home report and planning permission for any work completed. Where you can, see what kinds of guarantees the current property owner has for any work carried out on the house whilst they have lived in it.

10. Go back for a second viewing

When you come across a property which you really like and are considering purchasing, one viewing is simply not enough. Your first viewing can be overwhelming and you may not notice certain details whilst you are busy admiring the room sizes and new bathroom suite. It is vitals that you go home and sleep on what you have seen, weigh up the pros and cons and follow up on any enquiries which you made during your first viewing. Then, go back for a second viewing with all of this in mind. You may feel differently when you return, and you may pick up on some elements which you hadn’t noticed before. Consider bringing along a friend or family member who can remain objective for you, especially if you happen to know somebody who is knowledgeable about properties, and can pick up on any important factors which you would not otherwise consider. By returning for multiple viewings, you can feel more secure in your decision.

When it comes to purchasing a property, it is vital that you have a checklist, not only of the features which you’ve always dreamed of having in your next home, but also of the practical elements which need to be considered. Keep your eyes peeled for any damage, noises or general maintenance issues which you would have to contend with. Remember, the most important thing to consider when purchasing a property is its condition. So, try not to rush ahead on submitting an offer until you are certain that you are putting your money into a quality home which will suit all your needs.