If being involved in property investment has been something that you’ve been thinking about doing for a while now, why not start the New Year with a new property project?
Finding the right house to invest in is the first step as you branch out into this area.
There are some key things to bear in mind as you start your search, including –
1. The surrounding area.
Is the property in a geographical area that will have a supply of prospective tenants, such as an area near to a college or university? If you invest in an area with good public transport, then you’ll attract commuters and business professionals It’s also worth considering researching outlying areas, which don’t have as much competition in terms of a large number of HMOs but still has people who would be looking for a place to rent. Does the area feature in the news – in either a good or bad way? A place with a great reputation for their amenities or colleges will help you whereas an area with high levels of crime will hinder your ability to rent the property out.
2. The right price.
As an entrepreneur, you’ll be looking for a good price to pay for your investment. If you take a look at other comparable properties in the same area, is the price you’ve been given similar to these? Take time to do some research and also to approach your search with a clear idea of how much you’re willing to pay, given factors such as the area, size and condition of the house and the potential rent that you could collect there. Negotiation is all part of the process of course!
There is a balance to be struck when considering investing in a property that needs some work. On the one hand, you’re likely to get a cheaper price but this could be false economy if the cost of the repairs will escalate. Again, doing some research and asking a builder to quote for what the work will cost is the best way to calculate whether the lower price is actually worth it. There are many properties that just need a little TLC and then turn out to be a great investment.
We wish you all a very merry Christmas and a prosperous and peaceful New Year.
Happy property hunting!
Here at Nick Fox Property Mentoring, we provide mentoring services and other resources to help you when it comes to property investment. Find out more about our property mentoring here and our resources here.
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