– Whatever you do don’t
buy this type of house as your next investment property. (upbeat music) Hi my name’s Tony Law from
Your First Four Houses and my chat is all about helping you achieve financial
freedom through property. If this is your first time here be sure to subscribe to the channel and click that notification icon so that you don’t miss out
on any of the free content that I give you each and every week. So this video is all about which houses you shouldn’t be buying. If you wanna click here it
will run you through a video on which flats or apartments
you should also be avoiding. So the first type of house
that you should be avoiding in my opinion is a house that’s in an area with a declining population. Now if you go and check out this map, it will give you a really good overview on all the areas where
there is indeed a declining or of course an increasing population. If you can see that there is it’s an area that’s in clear decline, I would be reluctant to invest there. If it’s a declining population that means you’re gonna struggle to actually rent those properties
out, if you’re renting, or of course if you’re selling, you’re gonna have a smaller pool of people to potentially buy that property from you. Don’t buy a house where
you’re being speculative on the growth of that house. So don’t buy it thinking to
yourself do you know what that’s gonna go up in value
over this period of time. Is it a good deal today? Don’t buy a property in my opinion where you can’t add value to it. Okay I grant you if it’s giving
you a really good cash flow which we’re gonna come onto,
that’s absolutely fine. But if there’s really no way that you can add value to that property, and by that I mean real tangible value, and I know I talk about that a lot, I don’t think you should be buying it. Along a similar line don’t buy if it’s gonna give you no cashflow. This is the whole point, it’s supposed to be putting
money in your pocket. If you’re getting no or indeed
low cashflow on that house, I don’t think you should be buying it. Don’t buy that house if it’s
gonna trap your deposit in it on pretty much a permanent basis until the property hopefully
creeps up in value. Because that money is then
locked into that house. You can’t pull it back out
to go and do that next deal. With most of the properties I buy I’m able to put money into the deal
and then pull that money back out again relatively quickly. So I can use that money to
go and do the next deal. Don’t buy that house
if it’s gonna give you a low return on investment. This is of course a business,
an investment property, you’re looking to make
money out of that house. So if you’re only getting a
low return on the investment, you know what, I think you
should be looking elsewhere. And lastly if it’s a house
that is out of your area, and I mean out of your investment area, I would strongly question
whether you should be buying it or indeed looking at it at all. I totally understand if you
live in one part of the country and you have a very clear
knowledge of another area, that’s absolutely fine, you can go and invest in that other area. But if it’s this other area
that you keep hearing lots about but you really don’t know anything about that particular area, I don’t think you should
be investing there. If you would like a 50 point checklist that runs you through
all the steps you need to take before buying that
next investment property, simply click on the link here or the description box below and I’ll send it straight out to you. (upbeat music)