BENS TIPS ON SUCCESSFUL INVESTMENT
It is no secret that simply leaving your savings in a bank account these days will not make you a millionaire. Even with housing prices rising, investment in property is still popular and can still be incredibly profitable as long as certain rules are followed and the ‘right’ property is purchased.
I am, on a daily basis discussing potential properties with investment landlords and advising them on the type of properties that they should be looking for.
In my experience, there are a number of basic rules to follow and I would encourage any prospective investor to do the same.
- Always remember that the ‘right’ investment property is not necessarily a property that you would live in yourself.
- Landlords often get carried away with yield percentages, this is of course important but ensuring you purchase a property that is rented twelve months of the year is a far more important point to factor in when you are looking at property. After all, a property left vacant for two months of the year means a higher annual yield becomes irrelevant.
- Don’t be afraid of looking at unique properties – different can be good! In my opinion as long as the price is right, they can make better investments. Firstly, many tenants like to live in properties that are different from the norm, which in turn minimises the risk of vacant periods and more importantly when it comes to resale, you can expect to receive a premium for something unique.
- Location, Location, Location! The TV programme emphasised this point for a reason and the fact is where a property is situated is probably the most essential consideration when looking at available stock. A property should ideally be located close to station and/or local amenities and if not, have easy access to major road links. Buying a pretty family house in the middle of nowhere, however beautiful it may be is not going to draw the same amount of interest as a family home near a good school and station.
- Do not overpay – There is always another opportunity round the corner.
- Service charges on leasehold properties vary hugely dependant on the style of the property, whether it is a large or small development as well as whether a property has use of leisure facilities, communal gardens, lifts etc. These are all nice ‘extras’ for a tenant to have use of but remember! It’s the landlord that pays both service charge and ground rent and must be taken into consideration when purchasing for investment as they can significantly affect your yield.
I’m not going to give away all my trade secrets on how I can make you a successful investment landlord on this blog. Please call me on 01923 447192 or email me at email@example.com and I would be delighted to meet you and discuss how you can achieve the highest possible rentals whilst maximising the potential for capital growth.
Your Property ~ Our Business
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