Purchasing your first investment property is a big step, whether you plan on using it as a buy to let or want a quick turnaround and profit. The first option is becoming more and more popular, particularly in London where the number of people living in rented properties outstrips those who own their home. Whatever option you choose you need to work hard and plan carefully if you want to make money. Here are three essential things you need to get right when investing in properties.
Before you do anything else you should take a look at your budget and work out how much you have to spend. This is essential and can save you a great deal of time and disappointment. By being clear on your budget, you can target the right opportunities rather than attempting to do too much with too little. This will also help to prevent you from overspending or taking on too much risk.
When thinking about your budget, remember to keep all of the various costs you will encounter in mind. The price of buying a property is much more than just the list price, especially if you are targeting buy to let. You should ensure you factor in all of the various fees and expenses so you are clear on what you can afford. You may also want to think about how much you’ll need to sell or rent the property for to make a profit.
The next thing to think about is the location you want for your investment property. Typically investors buy their first properties in an area they know. This can be a wise idea, but you need to think carefully before you rush in. It is always important to have in mind which area is best for your target market so you will stand the best chance of finding tenants. With our professional property management services, you do not necessarily have to invest close to home, as we can manage every aspect of the property on your behalf. This gives you the opportunity to invest in areas you may not otherwise have considered, increasing your potential for success.
Finally, investors should think about what they want to buy. Properties come in all shapes and sizes, from the largest family homes to flats and even houseboats. You should have a rough idea of what you want based on your target market but you need to think more carefully about what they actually want. One thing to avoid is buying a property that you yourself would want to live in; you’re not catering to your needs and tastes, after all.
You should always keep the return on investment in mind when thinking about what type of property to buy. As part of this you need to remember that in the long term you are likely to want to sell up at one point or another. This should factor into your consideration as some properties will be easier to sell than others. You’ll also want to keep an eye on the value so you can make a good return at the end of the day.
We strive to offer the best advice we can to property investors who are looking to make a property investment in Merton or any other part of London. We offer personal services and will be on hand to help you however we can.
