There are a number of factors that should be considered before a property investor decides to purchase an investment property.
Deciding on an investment property requires a little know how, market understanding, patience and thorough due diligence before deciding to part with any investment cash.
Owning property (real estate) has always been a great investment. However, choosing the right kind of property to invest in might prove to be a little more difficult.
Do check out for the following instructions before choosing an investment property.
It is always advisable to decide on an investment strategy before starting out in property and many investors often forget to plan an exit strategy in order to maximise their returns from investment. Research successful strategies used by successful Multi Millionaire investors, who are happy to teach them in order to get the best results.
Property investors should do as much investigative groundwork before deciding to buy property for the purposes of investment, crunch the numbers and ensure that the returns are worth it and will fit in with your business model.
This will not only help investors opt for the best deal that suits their long or short term investment strategy, it will also pay dividends in the future
Choosing a location is probably the most important factor that property investors should consider. Try and look for available properties in prime locations, eg. Within 1 mile of a train station or city centre.
This enables investors to realise the rental potential of the property to its fullest. Opt for a locality that has current strong tenant demand or offers potential for extensive growth in the future.
Avoid buying cheap property
Avoid buying property that appears comparatively cheaper than its surroundings, Find out the current property values and open market prices before making any offer. Thorough research works, consult friends and business owners in the area, and approach at least two or three estate agents or property dealers. Do a comparative study based on your research and then finalise an offer on the investment property that is best suited for your budget.
Choosing An Investment Property
At a time when almost all kinds of information are just a click away from the mouse, make use of it. Start by searching online and get a fair idea about locations, types of available properties and property values.
Register yourself with several estate agents. Another way of choosing an investment property is attending auctions to get a sense of the property market and standard of available property suitable for the private rented sector.
Appoint A Knowledgable Agent
Choosing a good estate agent can help you choose the right kind of property meant for investment purposes. Look for an agent who has good reputation in the market and is well aware of investment properties and who offers investors a decent service.
Getting a mortgage or financial help for investment property can be tough going for many investors.
Buy-To-Let Mortgage loans can be applied for by solvent property investors with a regular income who can provide lenders with all the information that they require.
There are a wealth of suitable mortgage brokers that can be contacted by clicking here
Determine The Risk
Determining the risk profile associated with the property investment is important. Investors preferring low risk and low returns are advised to stick to stable, high employment areas which have an established rental market within the UK property market.
Invest In Areas You Know
Knowledge is Power! Spend some time researching and visiting the areas where you are planning to invest. Don’t rely solely on the agents.
Visit localities yourself and inspect the property and the surrounding neighbourhood as well. If you think that the neighbourhood is going to witness a growth in the near future, then investing in a property there will yield good results.
Walk around the area and check out aspects like local schools, commuter links industrial or commercial growth and transportation.
Appoint A Trusted Property Management Company
Seeking the services of a trusted property management company is probably the best option as they will give proper guidance about how to choose a decent investment property.
They should be familiar with the chosen area and all aspects of the rental and property sales market within their operational boundaries.
A property management company can help you get the best returns from available investment property in the local market.
Property Investors are urged to consider all of the above mentioned factors carefully before taking action to purchase investment property in the UK.
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