It is no secret that the housing market has been a little
'down in the dumps' for the past couple of years. Thousands of people involved
in the housing market found themselves making massive losses when the industry
seemingly collapsed overnight. Thankfully it now seems to be at the point where
it has recovered just enough for property investment to be a viable profit
making venture...providing the right property is selected of course! In this
post I want to give you an overview of the various things that you may need to
consider when searching for that perfect investment property. This is not a
complete guide. Many lofty tomes have been written on property investment.
Think of this as a 'nudge' towards carrying out your own research.
The best bit of advice I can give you is that no two
properties are alike when it comes to property investment. Even a house with
the exact same layout as its next door neighbour may have several key
differences which may raise or the lower the price substantially. As a property
investor it is important that you look at a property on its own merits. Just
because rental income in that location is 'through the roof' and could see you
making a huge profit does not necessarily mean that people will want to rent
the property that you purchase. Simple things such as the décor or even a minor
change in view or location could shave hundreds off your potential monthly
income. Whenever you are assessing a potential property you should always work with
a couple of real estate agents to get an idea of its worth. You should never
'guess' potential income. This is a business after all. Everything needs to be
planned down to a tee. It may take the viewing of dozens, or even hundreds, of
properties before you find one that is worth investing in.
You will also want to think long and hard about how you are
going to get your money back from the property. Many people will purchase a
property with the view to selling as soon as they possibly can. This means they
may redevelop it a little to the point where the price rises (consult with an
estate agent when doing this!). The positive is that the money will come in
fast. The downside however is that this is quite a risky investment. There are
plenty of people out there who have spent thousands on remodelling a house only
to find that the value increased just a small amount. Not enough to really
cover the work that was put into it. On the other hand, rental income tends to
be fairly 'safe' (providing it is occupied most of the time). The downside is
that the gains are much lower and it will take a while for the money to start
to flow in. If you had to take a mortgage out on the property then you may just
see a couple of hundreds of pounds profit a month. Most people do not really
seem to think it is worth it.
When you are searching for a property you are going to want
to think about the following things:
- The
Location: People are willing to pay more for a property which is in a good
'location'. This means close to decent schools, supermarkets, transport
connections etc. People love properties which have tons of open space
around them. Properties which have main roads next to them tend to command
a lower price when it comes to purchase and rental. That being said, these
properties do rent out quicker because of the lower price.
- The
Property: Does the property need any work doing to it? What amenities does
it boast?`How much space is inside of the property? All of this will have
a major affect on the price. If too much work needs doing to the property
then you may find it very difficult to rent it out.
- What
is the rental market like in the area? Are prices currently high? Could
you make a profit on it based on your mortgage? Are all of the properties
in the area rented? This type of stuff is going to have a major impact on
the decision on whether to invest in a property or not. If the housing
market is poor in an area then properties will be empty. Landlords will
likely slash prices just to fill them up. You may not be able to make a
profit on these 'slashed' prices.
The best bit of advice I can give you is that no two
properties are alike when it comes to property investment. Even a house with
the exact same layout as its next door neighbour may have several key
differences which may raise or the lower the price substantially. As a property
investor it is important that you look at a property on its own merits. Just
because rental income in that location is 'through the roof' and could see you
making a huge profit does not necessarily mean that people will want to rent
the property that you purchase. Simple things such as the décor or even a minor
change in view or location could shave hundreds off your potential monthly
income. Whenever you are assessing a potential property you should always work with
a couple of real estate agents to get an idea of its worth. You should never
'guess' potential income. This is a business after all. Everything needs to be
planned down to a tee. It may take the viewing of dozens, or even hundreds, of
properties before you find one that is worth investing in.You will also want to think long and hard about how you are
going to get your money back from the property. Many people will purchase a
property with the view to selling as soon as they possibly can. This means they
may redevelop it a little to the point where the price rises (consult with an
estate agent when doing this!). The positive is that the money will come in
fast. The downside however is that this is quite a risky investment. There are
plenty of people out there who have spent thousands on remodelling a house only
to find that the value increased just a small amount. Not enough to really
cover the work that was put into it. On the other hand, rental income tends to
be fairly 'safe' (providing it is occupied most of the time). The downside is
that the gains are much lower and it will take a while for the money to start
to flow in. If you had to take a mortgage out on the property then you may just
see a couple of hundreds of pounds profit a month. Most people do not really
seem to think it is worth it.As I said at the start; this is just a very brief guide to finding the perfect rental property. I know you are smart though. It is unlikely you would invest in a property unless you really researched more into the idea (if you are thinking of selecting a property based on the information in a single blog post then you are not going to be very successful). Remember, it is the selection of the right property which will generate income for you.
About the company “Passionate with Property”
These Darlington Estate Agents were specifically set up to make the selling of your property a joyful and stress free experience.
How? Well they are on-line which means they cost you lees in commission, BUT they have local agents on the ground, where you are, who you can speak to you face to face or over the phone, 7 days a week, 9am to 9pm. If this sounds like the type of pleasurable experience you want when selling your house, see their website:
How? Well they are on-line which means they cost you lees in commission, BUT they have local agents on the ground, where you are, who you can speak to you face to face or over the phone, 7 days a week, 9am to 9pm. If this sounds like the type of pleasurable experience you want when selling your house, see their website:
