5 GOLDEN RULES OF PROPERTY INVESTMENT
- Location, location, location- 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 favorable. 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.
- Target motivated sellers who want a quick sale. They 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 your figures stack up- 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.
- Invest with long term in mind- 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.
- Know your market and area- 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.