Looking for Investment Property Sales?
If you are an investor looking for an investment property sale then there are many things which you should look out for.
I myself have been burnt investing in property but I have also learnt a few important lessons which you may find helpful.
1) Never believe what you are told.
There are loads of property investment companies out there that will tell you that you have a fabulous under value property and that it rents out for hundreds of pounds. Before you part with your hard earned money you should make a few checks. First of all look at recent sale prices in the area. That way you can tell if you are being sold a dud. Even if the sale prices stack up, check out some of the resale prices for similar types of property. New build investment properties are usually sold at a premium but you should really be comparing the investment price against second-hand properties. The reason for this is that the minute you buy it is not a new build anymore and this will be reflected in any future resale value.
This first point also refers to any guide rental prices you are given. Once again have a look at rental websites for the area in which you wish to purchase your investment property. You may even want to ring up a few letting agents to find out how much would they market the property for.
2) Location, location, location
As the mantra goes, this is vital in what property you purchase. First of all it depends on your strategy. Are you looking for students, which may mean higher turnover and more potential for damage? Or are you looking at commuters who may pay higher rates but will need higher quality properties?
Is the area affected by crime or is situated next to a power plant or something equally unsavoury.
3) Do your sums.
Once you have looked over your figures, double check them even triple check them. One overlooked figure could turn your profit making investment into a money sucking pit. If you cannot confirm the figures then do not go ahead with the deal. This is especially important when purchasing flats in regard to the service charges.