Buying a property is a considerable investment, it’s a big decision, a huge commitment and not something that you want to do on a whim or make a mistake on. So, if you’re looking to make money from either renting a property out or flipping a property, then you need to be sure you’re spending your money on the right one. But how can you find out? Make sure you have the time to spend researching and looking into it, it will be worth it in the end. Set aside time for it and don’t expect buying a property to be something that you can just do overnight. It takes time, it takes planning, it takes research and it takes a lot of thinking. Don’t underestimate it but remember that anything worth having usually doesn’t come easy.
Spend Time In The Area
If you’re looking at a particular area or a specific property, either way, location is one of the most important things when looking at buying a property. You could fall in love with a house, but if where it is isn’t safe, or near to any amenities, then it might be challenging to rent out. Spend time in the area and work out for yourself what you think. What is the public transportation like? The schools? The shops? Is there a post office? A library? A park? A medical centre? Is it near to a big city? Go there, walk around, have a look, get a real feel for the place, and see if there are any red flags for living there. It can be really useful also to find out how many houses are currently available for rent if the area has an unusually high number this could either be a sign that there is a seasonal cycle or that the neighborhood is in decline, either way, you’ll need to find out which. A large number of available rental properties can mean you have to lower rents to attract tenants and a low number means you can raise the rates. You should, however, find out what the average rent is in the area.
Talk To People
If you have seen a property that you quite like, it’s in your price range, it seems like a good area, in fact, it might seem like so good that you don’t understand why it’s for sale. Then this is where you need to find out. Don’t be put off by the fact it might seem too good to be true because you can get some fantastic deals when it comes to property. People sell their houses for all sorts of reasons; it doesn’t mean there’s anything wrong with them. So, get talking to people, the owners, the neighbours, local estate agents, and local renters and landlords. All of these people can provide you with valuable insight into how much people will pay for rent, what kinds of people look to rent in that area, how long they might stay and basically whether it will be a good investment for you or not. Find out from the locals if they feel the area is safe, ask about the crime rate and if you don’t feel you’re getting the full story, then you can check crime statistics with the local police or the library. See if you can find out if the crime is on the rise in the area or if it is decreasing. As well as crime, be aware if they area is susceptible to any natural disasters because insurance is another expense that you will have, so you will need to know how much it’s going to cost you. If an area is prone to flooding, then the coverage costs can affect your rental income massively. You want to make sure that you are guaranteed rent, so do your homework and get asking questions.
Think About Who You Will Rent To
Do you want to rent to young professionals? Or do you want to rent to families? You might even want to rent to students. Each different type of renter will desire different things and potentially different areas, so if you are particular about who you will rent to, then you need to buy somewhere suitable for your preferred tenants. For example, if it’s a family you want to attract, then you’re going to want somewhere with a decent amount of rooms. If it’s students you’re after; you could perhaps have a cheaper but larger house with a large number of rooms because you can rent out each room individually. Or if its a young couple you’d rather have as tenants then you’ll want a smaller house. Again, for all of these options, the area is crucial. It is a good idea to look at the job market in the area if there are growing employment opportunities as this will attract more tenants. Again you should be able to find out this information from the local library or local newspapers or from the council. If a big company has recently moved to the area, then more could follow, but even if not, workers definitely will. This could make house prices go up or down, depending on the nature of the business.
Look Ahead
Before you sign on the dotted line and put your deposit down, make sure you have thought about the future. See if you can find out from the council planning department if any new developments are coming. This could indicate that the area is set for growth but also a lot of construction work could cause upset and an inconvenience to your tenants, new houses could also affect the property prices of the existing properties. Whatever you do, spend time doing your research thoroughly. It will save you time, money, and a massive headache in the future.
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