UK Property Investment Traps: In a recent video, I break down some nightmare property traps unsuspecting buyers often fall into!
In the video, I explain exactly what to avoid when investing in real estate in the UK. If you are investing in property, or want to in the future, this one is a must-watch!
You can see the full video at the top of this blog post, or via my YouTube channel. If you watch the video on YouTube, drop me a comment with your own property investment traps to look out for!
Investing in UK property has made me a lot of money! However, it can cost you dearly if you don’t know what to watch out for. In this article, I will give you 6 UK property investment traps to avoid.
Reading this article to the end will give you a starting point for your property search, and could save you thousands of pounds!
I am not a financial adviser, and this isn’t financial advice. This is a simplified article based on my experience as a multimillionaire property investor. It is not a complete guide to be followed, nor does it address your unique circumstances. Seek professional advice before investing.
Please help stop people making these big mistakes when investing in property by sharing this blog post on social media. The more people who share this article, the faster we can get financial education into the hands of the British public.
Thank you to everyone who takes the time to share our content, it really does make a difference!
1. UK Property Investment Traps: New Build Properties!
Much like a car, new build properties lose value almost immediately after purchase. This can leave you trapped in negative equity, unable to sell your house. New builds are not generally a good investment, I avoid them!
2. UK Property Investment Traps: Off-Plan Developments!
Often off-plan developments in the UK look nothing like the computer-generated imagery (CGI) used to sell the building. There is also risk of delays or even failure to complete too.
3. UK Property Investment Traps: Low Yield Buy-To-Lets!
There is a myth that buying a property is always a good investment. However, if you buy a buy-to-let with a net yield of less than 5%, you could lose a lot!
Due to taxes, such as Section 24 which prevents you from claiming mortgage interest as tax-deductible when buying under your personal name, you could end up paying more than you make!
4. UK Property Investment Traps: ‘Your First Home’ Scheme Properties!
The rebranded ‘Help to Buy’ scheme, now called ‘Your First Home’, has the same problems as the original offering! You are forced to buy a new build property, which will likely lose value. Worse still, you are limited to a list of approved developments which are likely to be sold at a premium!
5. UK Property Investment Traps: Properties With Manipulated Figures!
Be careful to do independent checks rather than relying on the figures given by the seller. For example, one of my clients was looking to buy some land with planning permission to build. The developer had built one house on the land already, and sold it to his own company at an inflated price!
If I hadn’t stepped in, my client may have assumed the other properties would sell for a similar price. Be careful out there!
6. UK Property Investment Traps: New Build Flat In London!
Now is a good time to buy flats in London because prices have dropped massively. However, this doesn’t apply to new builds! Developers are still trying to sell their flats based on the prices from a few years ago, don’t be fooled!
How To Avoid UK Property Investment Traps!
If you want to avoid UK property investment traps, you need some property training. 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:
- The SECRETS to becoming a successful property investor
Get immediate and actionable insights to accelerate your property investment journey.
- How to LEVERAGE other people’s money to get started
Begin to understand the strategies to use to reduce the barriers to getting started.
- How to FIND fantastic property opportunities
Understand where property professionals source the best deals.
- 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!
