Top Property Investment Tips
- By property cashpoint
- Published 01/20/2010
Investing
in property can be a tricky business especially in present economic conditions.
Below market value property offers
an ideal opportunity for investors to buy property at below the open market
price. But it is usually difficult to find these little gems and using an
experienced agent is the best way forward.
However,
there are indicators and things you can do to ensure you make the best possible
decision. Below are some property investment tips that should help you on your
way even if you are not looking for bmv
property.
As they say location is one of the most important
factors when investing in property.
·
The first
tip is to consider the area or country that is likely to provide you with the
best return. Many would be investors fail to look beyond their local areas.
This means they are potentially losing thousands by ignoring other opportunities.
Naturally London is one of the most popular areas in the UK. But if you are
looking for below market value
property you should also look at cheaper areas as well as you might be able to
pick up several properties at once and divide your investment. This is in
contrast to just buying one property and putting all your eggs in one basket.
·
If you
are considering other countries look at their economies. Are they growing fast,
is there lots of national or foreign investment or are they perhaps about enter
the EU. All of these positive indicators will have an affect on the property
market.
·
The same
applies to areas within your own country. You should look for local
regeneration initiatives. For example, the East London train line is going to
be extended, this will increase demand in the areas along this extension and
increase local property prices.
·
You
should also look for large businesses moving into an area. This normally means
more jobs and more jobs means greater demand for housing. This is useful if you
are buying a below market value property because you can easily rent it out.
· When buying to let you need to consider the cost of letting the property and the likely return on your investment. If after your calculations you find that you are making a loss, you need to move on or find more money for your deposit in order to reduce your mortgage repayments. It’s likely that you will have to factor in letting agent management fees, mortgage repayments, maintenance costs (about 10-15% of the yearly rent) and the possibility that the property may be empty for 1 month every year.
· When purchasing a property make sure it will be easy to maintain and has no major defects. Low maintenance properties mean fewer headaches for you.
· Buy in a safe area, look at local crime rates. It’s possible to find out how many youths have ASBO’s in an area this is a good indicator of local crime levels. Upmystreet is an excellent resource to find information about an area with out even leaving your home. Simply type a post code in and you can find out local crime rates and much more. Here’s a link http://www.upmystreet.com. Using these resources is very useful if you are considering a below market value property. Doing your due diligence in present market conditions is essential.
· If you are intending on buying a family home try to buy in an area with good schools. You can research league tables of independent schools and colleges on this site http://www.best-schools.co.uk. It is a useful resource for anyone wishing target affluent families. Here is another good website for researching public sector primary and secondary schools in the UK http://www.dcsf.gov.uk/performancetables.
The amount of money you make from a property investment is largely determined by the quality and suitability of the property in terms of your target market and the location of that property. Even in these hard times there are still viable investment options for the savvy property investor. A below market value property can mean you pay up to 30% less than the open market price. I suggest you find a specialist agent for the best BMVdeals. They generally use national marketing campaigns to source properties.
