Summer is already here and it’s going to pass soon enough. Landlords often have a busy time during fall. It’s also a great time for the property market, so here are some useful tips for buying investment property.
1. Know Your Market
Before buying any investment property, you need to assess the transport links, local schools, proximity to the high street and also the crime statistics in the area. Also, you need a better understanding of the size of property and style that works perfectly for the local tenants. If you do your research and understand the market, you will get the best investment property at a good bargain.
2. Property Size
1 and 2 bedroom houses rent out frequently than 3 or 4 bedrooms since a lot of people are often looking for smaller properties. Most tenants looking for the smaller properties are young professionals sharing a house or simply a young couple renting their first houses.
On the other hand, large houses are often occupied by families. Note that, your property might be suited to a HMO arrangement, depending on the location. Here, the tenants can range from students to young professionals. Most tenants view that renting one room rather than the whole property would be more economical. As a landlord, you can earn a little more by renting your property to sharers.
3. Add Value To Your Property
Once you gain a proper understanding of the property, you will find out the best properties to rent and which ones to get the highest possible amount of rent. For instance, by adding an extra bathroom or subdividing a bedroom will increase your rent. However, if you choose to do these renovations, you need to make sure you’re getting the best value compared to the costs of renovation. Before purchasing the investment property, you need to assess the costs and prepare your maintenance budget accordingly.
4. Take Your Time With The Purchase
If you’re buying your first investment property, you need to do a lot of research prior to the purchase. Do you feel uncertain about the type of property to invest in? Well, you need to do comprehensive research of the property market for the best information.
You can find a lot of property market information online. Also, you can learn more from the property experts in your area. Before making your purchase, you should determine your rental yield, rental price growth for the property and potential capital gains. You should also ensure that any loan you’re getting is competitive and this is where private lenders for real estate pointing come in.
5. Prepare An Exit Strategy
When you buy investment property, make sure there is an exit strategy. For instance, are you planning to buy property to develop it then sell it immediately? On the other hand, are you going to rent the property to tenants and if so how long will you do it? With an exit strategy in mind, you will do everything right to make sure that your investment gives you the expected returns.
In conclusion, buying your first investment property is something that needs a lot of research. Talk to property experts and do your research online to learn more about the market to get the best value for your investment property.