There is no doubt that, for long term investment, property is still very much a solid choice. Of course, there is the potential to make money in the property market by doing up and renovating properties for the resale market. But, for a letting’s investment, what are the things that you should consider?
Make sure you buy where the type of tenants you want to attract, want to live. If you are looking for a professional single person or couple then you will probably need to make sure the property is close to commuter links, ideally being near a train station and/or motorway junction is favourable. Kings Heath and Moseley are excellent local areas for that sort of tenant. If you are seeking a family then a location slightly further away from the hustle and bustle next to parks and good schools will be a more important factor. Perhaps you could consider Droitwich, Redditch or Bromsgrove for properties that meet these criteria?
Sellers who want a quick sale will often be prepared to accept a lower offer to an investor in a good position over another buyer in a chain who may be willing to pay slightly more as there is more risk involved.
Make sure that you buy a property which you actually make money on rather than merely breaking even. You also will need to have a buffer set aside for unexpected expenses such as boiler break downs and general maintenance. Also, as we all know from experience, works on property often unveil other issues which need sorting which inevitably means you go over budget.
The property market goes up and down and it’s very difficult to predict when prices are going to change. If you buy with long term gain in mind then short fluctuations in price shouldn’t affect you too much.
Speak to professionals or other landlords in the area who can tell you which areas are letting best and for what reason. It’s no good buying a property which seems to be a good deal but there is no rental demand in the area. Definitely make an appointment with our awesome lettings team who will be able to help you with market and area information.