Property prices continue to rise, but that only makes them better to sell for seasoned property investors. If you can secure a suitable property at an excellent price – at an auction, for example – you can add value to it and turn a substantial profit on the current market, read on for details.
Find the right area
The right area for property investment is usually somewhere that is sought after and commands a suitable asking price; the proximity to schools and local amenities is also a key consideration. Some properties look like excellent buy-and-sell options, but with the right location, they can fail.
When you find a project worth your investment, make sure you carry out proper research on the area before committing to the deal. Find out what people in the area are looking for and how much they are willing to spend. A good place to start is by talking to an estate or letting agent.
Find new opportunities
Property investors are always on the lookout for the next best place to invest, and they often use websites like Concierge Auctions to find the best deals. An auction site can pair investors with properties that have huge potential for added value, as well as ones that are ready to go.
If you find a property that looks perfect, there are a few things to look at. First, make sure the property has enough opportunities for added value, large loft spaces and gardens that can be converted. Also, check the local area for similar properties and check for any structural damage.
Buy in the local area
While it can pay to invest in a property outwith your local area, it’s riskier. Investing in a property close to home means you have access to local services and amenities; it also means you can visit the property once in a while to check on renovation progress and if it meets expectations.
New investors would be wise to keep their initial investments close to home in an area where they understand the demands and challenges of the market. If you are more advanced, you might have a portfolio of places in surrounding areas that you know equally well for expansion.
Acknowledge your limitations
There are two main ways that investors make money from a property one is buy-to-let, and the other is buy-to-sell. A buy-to-let property is a better source of long-term income, but it’s also more of a business where tenants must be looked after; buy-to-sell offers one-off payment.
If you want to invest in a buy-to-sell property, you need to source a property that has the potential for added value, which means lofts that can be turned into bedrooms and interiors that need some work. Remember, you need to renovate the property, so ensure you have resources.
Find the right lender
Having the right lender in your corner can make a difference when trying to secure a property. Choose from mortgages, bridging loans, and others; talk to your financial adviser about your options. Also, ensure you have a lender in place before you attend an auction or make a bid.
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