27 August 2010

Owning a few properties, to some makes me a property aficionado, especially my friends. A glamorous world of fast cars and faster girls.

Of course this isn't really the whole story.

There is a perception that if you are an owner of a few properties then you clearly have money...Not at All

As I have said to friends before, owning properties can sometimes be both a burden and a huge expense. Not the James Bond lifestyle they think.

I am unfortunately on a stupidly long fixed rate deal with my Buy to let mortgages. This inevitability has had a bit of a financial impact on me.

With interest rates at an all time low I have not benefited one smidgen.

I am also currently receiving exactly enough rent to cover my mortgage. So I am not earning any money there. And to really kick me whilst I am down. Both properties are in a state of negative equity. FANTASTIC!

So now any repairs for the properties comes out of my pocket, and as a recent experience has shown, if the tenant decides to take a break from paying rent, the powers that be, rather than helping you out and granting you a quick eviction, also kick you in the proverbials by banging the TENANTS RIGHTS DRUM!

I can assure you through that period if I could have found a Property Investor to make me a cash offer then I would have bit their arm off.

Of course though I was in negative equity so any quick house sale was right out the window.

So when a friend asks my advice on buying properties or the high brow world of property investment, my answer is simple.

If you want sleepless nights, no spare cash, and problem tenants. But want to brag that you are a property investor then do it.

The Property Investor manual did say that I will be driving a Ferrari in a few years and living in a penthouse flat.

Well my Fiat Punto 1.4 dynamique is Italian and my bedroom is upstairs.