i-on magazine

On the property ladder, Stephen McKechnie

As owner of Kelvin properties, one of Scotland's largest residential landlords, Stephen McKechnie knows more than most about moving up the proprty ladder.

Having grown up in the south side's Kingspark, Stephen stayed south of the river when he purchased his first flat in 1991 in Shawlands. He moved west five years later and has lived in the west ever since.

First property
A top floor, two bedroom flat in Shawlands which I bought from a friend. I fancied living on my own as all my friends did at the time. It needed work, but as I was a general builder, I called in a few favours from fellow tradesmen and friends to refurbish it.

Profit
I bought it for £28,000, spent around £6,000 doing it up and sold it for £80,000 five years later.

The ones that followed
The fact my house was appreciating faster than I was getting wages as a builder, I decided then I would like to get involved in property. I now own over 400 properties throughout Scotland, built up from profits made from buying and selling individual flats.

Present property
I currently live in a three bedroom in Dowanhill in the west end. It's perfect as it is a great size, has underground parking, which is a must in the west end, and is close enought to Byres Road for all the activities but far enough away not to be disturbed.

What do you look for in a property?
If it's for investment, the key factors are price, location and would it rent well. If it's for a home it's more about suitability and how you feel about the property.

Buying as a home or an asset?
I have mainly bought as an asset, as this is what I do for a living.

Would you stretch your finances to afford a mortgage?
No, I have seen many people lose out on various houses. They become desparate and disheartened, and end up offering inflated prices just to bring house hunting to an end. Then they spend their time worrying about the mortgage payments.

Tips for would be investors
Buy in an area that's reasonably priced and will rent well. Hopefully your rent and your bank payments are around the same.

Too many people want to own property in sexy areas such as the west end but struggle to get the rents that they need. A £100,000 two bedroom property that acheives £400pcm stands better than a £200,000 two bedroom property with a £550pcm as an investment. Also build in factors such as insurance/ fees/ void periods when calculating expenses.

Finally remember property is a long term investment, not an overnight result.

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