Tips for Investment Buyers31st May 2017
Know your area!
It is essential that you research and understand the types of property that are most popular in your area.
When you are looking at properties, try to remember that you’re not searching for your own home and remain open minded. Take advantage of any advice you are given from those in the know (Local Estate/Letting Agent).
Know your target market!
Perhaps you’re looking to rent your property to students, professionals or families? Each category will be slightly different in terms of the advice given and the most suitable properties for your target. Ensure that you are clear about this before beginning your search.
Estimate the return on your investment!
The return on your investment is extremely important and it’s good to estimate this beforehand. Generally, a return of above 4% is good, although this is likely to vary from area to area. Calculate your potential financial returns by simply dividing the expected annual rental income into the purchase price.
This figure is a great starting point but do consider the running costs and any investment you may need to make in the initial redecoration, renovation and/or equipping of the property. It is important to sit down and consider ALL of the costs involved before taking the plunge.
If you need any more information please contact us.