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Hi I'm new. Thoughts on investing far from home?


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Hi 

I am literally just starting - I've read, re read attended three day basic trainings with companies (not signed up for the 10k + affairs) but did get something out of the focussed time and consolidation of what I had already read.

No matter which way I switch it up I currently live in one of the most expensive areas of the country and with some start up money and dreams of getting a good pace of expansion in the next couple of years I know I need to make the strategy work up North and think South later.  I need to get the cash flowing before I do anything else much.  

I just wondered how other people in a similar situation found the experience.  Of course a lot can be done on line but the travels around the country are going to be needed.  I currently have a really demanding job at 10 hours a day minimum, but do have some great help with my husband who works very part time.  We have young kids too.  No matter which way I add it up, for my strategy I need to invest a long way from home.  

Have others found that the time needed in the target investment area reduces as you build?
Is anyone in the same situation as me, kids, demanding job and a desperate desire to invest 100's of miles away? - and if so are you still sane, or are you totally exhausted?

And nice to be here!

Vix

 

 

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Dont pay people to teach you how to invest, and dont pay people to manage this as a business for you.

You can find all the advice you need from estate agents, solicitors, brokers, and accountants. They are the ones who actually know what the laws are, the regulations, the opportiunities because they have clients that are succesful and those that are not and you are paying for that collective experience. Anyone hosting training from a sad retail park somewhere are far lower on the rung. If they knew what they were doing, they would be doing it...

If you dont have the time to go and look properly at a house, an area, the tenants etc, you are going to get burned. You're responsible, so dont leave that to others. There are lots of really sketchy areas in the North that will be financial black holes that local agents just love to pitch to out of towners in the hope they see nothing but double digit yields.

 

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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I think its really hard to invest a long way from home in an area you don't know. Your costs are higher because you have to pay someone to do even the smallest of jobs and unless you can find really trustworthy people you are likely to be taken for a ride.

Maybe now is not the time for you to be starting on this? Perhaps you should invest elsewhere until your starting capital is enough to buy something small near where you live.

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17 hours ago, victoria-baran said:

Hi 

I am literally just starting - I've read, re read attended three day basic trainings with companies (not signed up for the 10k + affairs) but did get something out of the focussed time and consolidation of what I had already read.

No matter which way I switch it up I currently live in one of the most expensive areas of the country and with some start up money and dreams of getting a good pace of expansion in the next couple of years I know I need to make the strategy work up North and think South later.  I need to get the cash flowing before I do anything else much.  

I just wondered how other people in a similar situation found the experience.  Of course a lot can be done on line but the travels around the country are going to be needed.  I currently have a really demanding job at 10 hours a day minimum, but do have some great help with my husband who works very part time.  We have young kids too.  No matter which way I add it up, for my strategy I need to invest a long way from home.  

Have others found that the time needed in the target investment area reduces as you build?
Is anyone in the same situation as me, kids, demanding job and a desperate desire to invest 100's of miles away? - and if so are you still sane, or are you totally exhausted?

And nice to be here!

Vix

 

 

Hi Vix, happy that you are here! I set up my business, alongside a job and a family. This is actually very common - most people don't have the money or the knowledge to set up a business in their 20's. 

When I visit a location, I'll wake up at 5am and then stay overnight in a hotel. A good hotel in most English towns will cost £60. I quite enjoy a 3 hour drive, with a mug of tea and listening to podcasts on my phone!

I'll normally find a property within 5 visits to a specific location - although in Leeds, I bought a property on my 1st visit! Sometimes I bring my family along - we can extend the break and go somewhere nice. 

As you're working, you could take the Friday off as a holiday, and then visit on Friday and Saturday. I understand that you want to save your holidays, but some small sacrifices will be needed! To be honest, it's not that difficult - but you do need to be motivated!

If you're interested in my story, you can read about it here: https://evolutionblogger.com/about-me



 

_______________________________________________________________________________________________________________________________
Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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Hi Vix

Just make sure you account for the effort involved if you invest far away from where you live. The long drives and time away may stack up on paper but the extra hassle and time spent on the motorway could start to grate after a while. There are plenty of people on here who seem to make it work though.

Best of luck

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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Welcome to the forum.

I think people 'darn sarf' can think everything seems cheap in the North and the idea of these amazing yields and passive cash flows are often nightmares disguised as dreams.

The idea of yields are that they reflect income but also risk. Certain types of properties can be sold as amazing deals but if they were that good then people with local knowledge would snap them up, especially considering the relationships they have locally.

I'd also echo the point about the costs involved when you are so remote, you are relying on people you don't know, firstly to tell you truthfully what the problem is, what the true cost is, and then that they've done the work required to the standard required. Or you find an agent. Obviously most are reliable, but it's a bigger risk if you dont know any of them.

Also the capital growth varies from street to street in a lot of instances, it's not just an area, it's literally street to street, this might be the same everywhere I can only speak for what I know.

It isn't impossible but its incredibly time consuming property.

Jesus,  I just read that back, I sound a right gloom merchant.

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It's 2020. Nobody will hold gloom against you!

_______________________________________________________________________________________________________________________________
Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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12 hours ago, nicholas_b said:

Jesus,  I just read that back, I sound a right gloom merchant.

I think a dose of realism is never a bad thing - there are a lot of people who think property is easy money and sometimes it is really hard work! I always laugh when I hear people talk about 'passive income' - there is nothing passive about being a LL!

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Well that all sounds fairly miserable and uninspiring, doesn't it?

I'd certainly agree with the comments to avoid the training companies, as they don't make most of their money from BTL. In terms of investing in an area you don't know, it's definitely harder and I wouldn't recommend doing the first few blind, but it's possible after that. 

If you're attracted to the idea of a £30k house in the north east, then you're probably going to be looking at a lot of pain, but it's not all mud huts north of Watford. I'll focus on the north west, as it's where we're based, but the same could be said for any of the major cities and surrounding towns. 

We've got a property in Liverpool, about an hour from home. Took 3 or 4 trips over there to find the right area & property, following some internet research, but could have narrowed down the areas in a weekend. Get a map and colour code it based on your research and you'll eventually narrow down the areas to look at and then colour code it some more. May take longer to find a property in the areas you've identified, but at least you're not wasting time on address you wouldn't want to invest in. We did do some work to that ourselves. That would have been more difficult from further away, but the additional cost of getting it done via the letting agent wouldn't have been that high and could have been factored into analysing the deal. It's had two tenants over the last 2 years and I've never visited it again. Everything is sorted by the letting agent. Thankfully nothing more than safety checks or minor repairs so far, but it may need some decorating next time and we'll probably get the agent to sort.

We've got a couple of properties with 20 minutes of home, one which we refurbished, which meant doing a lot ourselves. Although both let through agents, we've got a good relationship with one of the tenants and often deal with them directly via text. They've had a couple of issues in the last year that have been sorted through mybuilder or similar and just sending the tradesperson straight to them. Could have done that through the agent, but that particular agent is a bit useless and it probably took me about 15 minutes each time to find someone. So not passive, but not a big deal and something that can be managed alongside a day job (especially if there's a part time day job in there). As it was all done remotely, they could have been anywhere in the country and the level of effort would have been the same.

Last few houses are around Burnley, about an hour north of home. That is definitely heading into the street by street knowledge required. Great yield, but capital growth will always be low due to fairly poor connections to the major cities. First house was about 15 years ago with a friend with no idea what we were doing and bought in the wrong area, but that led into getting a really good agent (at the 2nd attempt). We've then used that agent for finding other properties in the area and because they know it so well, they can say where to buy and where to avoid - they're only going to make money if there's consistent rent coming in, so they want the tenants that are going to pay with no hassle just as much as we do. For those properties, we do nothing other than via the agent and I've not even been inside one of them.

So can you do it remotely? Yes, but you need to put a bit of work in first to find the right area and/or right local agents. I'd also suggest you stick to an area. It may increase the risk, but otherwise you'll be needing to find the right area and a good agent everytime. If you've got an area you already know or have family/friends who know it and you could visit, start there, as it's easier than somewhere you know absolutely nothing about. 

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