Extra home

According to the author's ‘Rule of 12’, a good buy-to-let property will give you around 12 per cent of the purchase price each year in income, so if your new property costs £45,000, you would hope to get around £450 per month in rental.

If similar properties in the area are rented out at £350 per month, you know your property will struggle to bring in the rent you need and maybe you should consider investing somewhere else.
You can find out much more about the Rule of 12 in the Buy-to-Let Bible.

It is possible to borrow everything you need by taking out an unsecured personal loan and using it as a deposit on your new property. However, this is a risky way of investing, and you should probably only do it if your income is much higher than your spending.

Another option is to arrange a 100 per cent mortgage. Some offer several times your salary, plus your partner’s salary, and you can find a list of providers in the Buy-to-Let Bible – Ajay Ahuja

If you do have enough money for a deposit on your new property, it is often easier to get a buy-to-let mortgage than a normal one, because the property rental income – not your income - will fund the repayments.

1. Auction rooms welcome anyone who swells the crowd, who is dressed reasonably whether they’re going to bid or not, and who will keep fairly quiet during the auction.
   
2. There is always a constant to-ing and fro-ing of people. You can arrive and leave whenever you like, but try not to distract people while bidding on a lot is taking place.
   
3. It’s not unusual to arrive late or leave after the lot you’re interested in, but you should try not to miss the auctioneer’s opening speech and announcements.
   
4. Auctioneers often seem to comment on vacant seats available at the front of the auction room, even though lots are no more expensive whether you are sitting at the front or the back. Use the empty seats if you want to, but it’s also good to stand where you can see any other bidders.
   
5. You can choose whether to sit or stand but if you want to bid, you need to be in a position where you can see the auctioneer and he can see you easily.
   
6. Auction rooms usually open about one hour before the auction starts. Most of the audience turns up in the 20 minutes before proceedings start. Auctions often start about five minutes late, but don't rely on this. If you have questions to ask the auctioneer’s staff or solicitors before the auction, try to arrive half an hour before the auction starts.
   
7. When you arrive, always check:
   if there have been any additions or amendments to the lots and lot details
   if the lot in which you are interested has already been sold or withdrawn
   if the lots are to be offered in alphabetical or numerical order.
   
8. If you want to bid, don't be shy about getting the auctioneer’s attention by waving or calling out.
   

Properties that are difficult to sell
The auction route has often proved more successful than private selling for properties that are hard to sell. This might be because some people at auctions are willing to take a chance on a property, particularly if they think it looks like a bargain.

Repossessed houses
Unfortunately for their previous owners, these properties are very common at auction. Whilst feeling for the people who have lost their houses, there is no doubt that buyers benefit from these situations.

Investment properties
Properties that are owned for the income they produce (such as offices or shops) are often included in auction catalogues. Investors cover a range of buyers from large pension funds right down to individual investors looking for a return on their money.

If you are new to the property game, it’s probably best not to. It is time-consuming, stressful and you lose money while the property is not being let out.

If you are experienced, have the time and can afford to do without the incoming rent, then it could be worth your while. Always remember to double the amount you think you’ll spend because unforeseen costs almost always emerge.

Kitchen
Is the kitchen big enough to accommodate a small dining table? This is attractive if there is only one reception room and it turns the kitchen into a kitchen-diner.

Smallest bedroom
If the smallest bedroom is smaller than 6' 6" in any direction then it’s not a bedroom! You need to be able to get a bed in a bedroom, so this room can only be considered as a study or a baby’s room. You need to think about this when deciding what type of tenant you are looking for. If you’re looking for two professional people to share a two-bedroom flat, then the second bedroom must be bigger than 6' 6".

Bathroom
Is there a fitted shower? A bathroom is a lot more desirable if there is a power shower. If there are two bathrooms then the property is very desirable, even if one is only a shower room.

Heating
An old heating system can be expensive to replace. If possible, get it checked before you buy the house. It is your legal duty to provide heating and to issue a gas safety record.

Electrics
Are the electric sockets old? This will tell you that at some point the whole electric system will need rewiring.