Much of the time in life, success surprises me. Perhaps it's because I'm too self-critical but I often don't believe my own hype! I could sell ice to the Eskimos (although I think they'd prefer a nice cup of tea - wouldn't you - sitting over a hole all day hoping for a fish to take a bite)?
When I do get a 'yes' to a question that I am expecting a 'no' for, I am not only pleased but taken aback. Of course it's a reaction I try to internalise - I don't want to create the thought in my customer that they are the first/only/unique person to say 'yes' to such a crazy question, or they might decide to retract their answer.
I am pleased to say that, although it has been hard work, investing in an HMO, has definitely produced the returns so far that I had hoped for. I was somewhat doubtful that my plan would work. I HOPED it would - I had seen and read of other people's success and decided that if they could do it, so could I. But confidence is not a predictor of success. It just helps you overcome difficulties when they do arise.
So with a plan that was fairly conservative in nature - underestimating income, overestimating expenditure - I stepped out in trepidation to execute this new venture.
In the space of 6 weeks, we have four tenants who are all professional, working people. The house is working well and the tenants are managing to rub along well together. We have had a few niggles with the heating and plumbing (an old system), and today I went down to the house and the back gate had come off its hinges. Fortunately my builder dropped in to talk about another piece of work that needs doing in another property, and deftly fixed it (thank you Andy)!
It all seems to be working well so far. Can I call it 'success'?? Well, I suppose the old phrase 'time will tell' comes to mind. We still have a credit card bill to pay off, and there are always things that could be improved. However, if I was an Eskimo right now I'd put the kettle on. This HMO fish has been landed.
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| Sometimes you can only get results when you are cold, wet and tired |
Hi Wend, I have a question for the property guru! We're toying with the idea of buying two small cottages when we sell this one, one to live in one to rent out. We'd need a mortgage for one of the two... My question is: does the rental property need to be pretty? Does it make sense to pay that bit more for a cute terrace or should you find the cheapest box that you can find as the rental income will be the same? Or does finding a cutie make sense in terms of selling it on at the end? Thanks Wend! Suse xx
ReplyDeleteSorry I didn't answer your last bit! Although in theory a cute cottage might sell quicker, again, in the market you are looking at, many people are looking for a really clean basic house that either they can personalise, or indeed rent out again.
DeleteI think you will find that the income is definitely comparable (if not equivalent) whether you buy a bog standard 3 bed semi or a cute cottage, but you will probably have far less repairs and maintenance on a solid 1960's semi compared to a 1760's cottage. xxx
Hi Suse! Thanks for your question (does that sound terribly professional)!!Seriously, thanks for reading this blog and making a comment. I haven't been very good at publicising it for various reasons, but it is SO nice to hear from you!!
ReplyDeleteWith regards to your query, I think it all depends on where you are thinking of buying the rental property and to whom you are hoping to rent! I suspect that you are probably thinking of Crewe or Haslington, so I would suggest buying the most straightforward second property you can find. It needs to be clean, fairly basic, have neutral decor and have NOTHING complicated about it. In my experience, tenants like STRAIGHTFORWARD!! There's nothing they hate more than having to deal with issues in a property that they don't own. They want everything to work, and to be simple.
A very buoyant rental market at the moment is the 3-bed semi rental house - perfect for families with a couple of youngish children, who cannot afford to buy, but don't want to rent rubbish either. Prices in Crewe are very competitive at the moment and you should be able to find something that you can get a great deal on too. If you are willing to do some work such as decorating and new carpets, and you price it reasonably, you will rent it out with no problem at all.
Let me know if you want me to look at anything with you, or if you need advice about the legal side (contracts etc)!! Can't wait to find out how you get on - exciting!! xxx
Brill advice - thanks Wend, property pro! xx
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