Did you know that asking questions is a great way to challenge yourself and make sure you’re not making incorrect assumptions?
This is useful when making a key decision like choosing a property to invest in.
Here are a few things that you should ask yourself on your property quest –
- What kind of tenants am I aiming to have? Young professionals? Students? Families?
- Does the geographical area have what my tenants need – like a good transport links for the young professionals, leisure and retail nearby for students and schools and amenities for families?
- Am I aiming to create a single buy-to-let or a house of multiple occupation (HMO)? (This will affect the size and format of property that you choose).
- What condition is the building in? Do I need to spend a lot of money refurbishing this property? If so, is this accurately reflected in the price?
- What is the average rental rate in this area? Will I be able to cover my mortgage?
- Why do the owners of the property want to sell? How long has it been on the market for? (You can use these things as a way to get the price reduced).
- In line with the recent changes to ruling on houses of multiple occupation (HMO) – are the bedrooms the correct size? For a person over 10 years of age 6.51 square metres and a room for 2 persons over the age of 10 years needs to be 10.22 square metres. For a room sleeping a child under 10 years old, the minimum size is 4.64 square metres. These are minimum sizes rather than a statement of what is the optimum value.
- Can I get vacant or early possession so I can begin work on it if necessary?
- What mortgages and rates are available to me?
- Putting my emotions and personal preferences aside, does this property seem like a good investment and one that will be successful both now and in the future?
We hope these questions will help you get off to the right start as you begin viewing properties and considering your options for investment.
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focusses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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