Investing in property can be a very lucrative business, provided that you buy the right houses at the right time at the right price. There’s a lot to consider when acquiring new properties for your portfolio and buying a house or condo to let is a very different proposition to buying a home. If you’re thinking of expanding your collection, here are some golden rules to bear in mind for your next purchase.
Location is everything when it comes to buying to let. When you buy a new home, the location you choose may have sentimental meaning, or you may base your decision on proximity to schools or your place of work. When you’re buying an investment property, the aim is to find a property in a desirable location, which will be easy to sell. Get to know the local area well before you buy, research house prices and look for signs of investment in the area. If you can’t afford to buy in a spot that is already in demand, it’s a good idea to search for up and coming places. If you’re buying in the city, for example, look for building developments, new houses and schools, new train, bus or metro routes and cafes, shops and bars popping up.
Catering for the market
When you buy property as an investment, it’s important to think about who you’re going to target when it comes to selling or letting. What kind of tenant are you hoping for? A sprawling waterfront villa estate is going to attract a completely different buyer or tenant to a city center apartment close to universities or colleges. Think carefully about the market you want to tap into and set a budget accordingly. Look for features that will appeal to that audience. If you’re hoping to attract young professionals, for example, buying near subway or rail stations or major roads into the city is always a good idea.
Searching for a USP
If you’re operating in a saturated market, look out for unique features that could set your property apart from the crowd. If you’re buying a country pile, finding a house or ranch with land suitable for outdoor pursuits or access to a lake could be a good move. If this sounds appealing, you can view details at SATP. If you’re targeting young professionals, finding a city pad with outdoor space or quirky interior design features, such as exposed brick walls or a bijou basement office, may attract more attention than your average condo.
Paying the right price
The price you pay for a property will have a direct impact on your profit margin. You should only pay what you can afford and what you feel the property is worth. If you’re struggling with the valuation, there’s every chance that other buyers will feel the same and you’ll find it difficult to get the rental fee you want. There’s usually room for maneuver, so try and negotiate the price down until you’re confident that you can turn over a profit.
Are you looking for your next investment property? If you’re searching for a house or flat to let, bear these golden rules in mind before signing on the dotted line.
This is a collaborated post.