Property Investment Gone Wrong: In a recent video, I break down the specific properties to avoid when investing in real estate.
While you can make a lot of money investing in property, if you pick badly, you can also lose a lot. Whether you are a first time buyer or a seasoned investor, you could save yourself thousands of pounds by watching this video!
You can watch the video at the top of this page, or on my YouTube channel. If you watch it on YouTube, let me know if you have encountered any other types of properties to avoid in the comments section.
In the video, I give you 10 property investments to avoid. In this article, I focus on 5 of them. This blog post discusses property investment gone wrong, so you can avoid these pitfalls in your own property journey.
If you find this article useful, please share it on social media. That way, we can save other property investors from making these mistakes! Your followers will thank you, and so do I, because sharing our content makes a massive impact!
1. Property Investment Gone Wrong: Flats With Cladding Issues!
Following the tragic Grenfell Tower fire, stricter rules have come in around unsafe cladding on buildings. If a building has an EWS1 rating of B2 or B3, it is considered to have unsafe cladding.
This means you won’t be able to get a mortgage on the property, and you will potentially have a bill for expensive fire monitoring. These type of flats are a big no-no. Avoid!
2. Property Investment Gone Wrong: Overpriced Self-Build Opportunities!
Often, you will see land for sale with planning permission to build on. This might seem like an excellent opportunity, but is it really as good as it seems?
The price of building houses has gone up significantly, and in some areas is even above the market price for a house. Make sure you know your figures before buying, and don’t rely on the sellers own estimates.
3. Property Investment Gone Wrong: New Builds With High Ground Rent!
If you are buying a leasehold property, be careful of high ground rents! While a property could seem like a good deal on paper, if you will end up paying massive amounts in ground rent, it really isn’t!
If ground rent is too high, you may find the property is unmortgageable as well! Avoid these types of properties at all costs!
4. Property Investment Gone Wrong: Flats With A Lease Under 50 Years!
When you buy a flat, you are typically buying a leasehold property. That means you don’t own the land, you lease it for a set number of years. If there is less than 85 years left on a lease, you are going to struggle to get a mortgage.
In some cases, if the lease is 70-80 years, it can be an opportunity to buy for cash, and extend the lease. But if it is less than 50, the property is basically worthless!
5. Property Investment Gone Wrong: Investment Ponzi Schemes!
If you are new to property, just giving your money to someone else to invest may sound tempting. Some so-called property influencers run schemes promising high returns to invest in their deals.
Unfortunately, sometimes they are not investing in property at all. Instead, they are taking in money from new investors to pay out earlier investors. This is known as a Ponzi scheme. While this is illegal, it takes a long time before the person is caught due to investors initially getting payouts.
Property Investment Gone Wrong: Here’s How To Get It Right!
So that’s property investment gone wrong, but I can show you exactly how to get it right! Join me at my next introductory online training event!
We have different online trainings throughout the year, each teaching different things. Here is a sample of what you could learn on one of our online introductory webinars:
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The SECRETS to becoming a successful property investor​​​​​​​
     Get immediate and actionable insights to accelerate your property investment journey.
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How to LEVERAGE other people's money to get started​​​​​​​
     Begin to understand the strategies to use to reduce the barriers to getting started.
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How to FIND fantastic property opportunities
     Understand where property professionals source the best deals.
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How to RECYCLE your money again and again
     Don't just do it once, repeat the process to build your property portfolio.
Property investing is not just for the rich! Learn the strategies that thousands of people have used to not only start investing, but become financially free! Tickets are free, so book your property training webinar now. If you are ready to take action, I hope to see you very soon!
