You need to concentrate on research, research, research.
We are all told that when buying a property, it’s all about the location, but when investing in property that isn’t enough. We need to dig deeper and focus our research on a number of other areas that are equally as important.
Develop a plan
Before you reach the stage of investing in property you should develop your plan. Decide what you want your property portfolio to achieve for you 5, 10 or 15 years down the line and put plans together to make sure this happens. Often by putting together a plan you will discover the type of property you should be investing in.
Research your property source.
By now you should know that you should always buy below the market value, but how will you go about it? Will you build up relationships with local letting agents, try auctions or outsource the work to a company like Rescue my Pension. Whichever option you choose, do your research. What kind properties can you expect to get from each source, what areas do they cover and are they a reputable company? Fortunately this can all be done quite easily by using a search engine like Google.
Research the deal
If you are presented with an investment opportunity, don’t dive in immediately, make sure you do your research. Things to consider include what is the current state of the property, is it below market value, what rental can you expect, if it’s a flat how long is the lease, what are the service charges and ground rent? The list is exhaustive but don’t let that deter you. Get it right and the rewards could be fantastic.
Research the area
So the deal is great – invest? No, you need to make sure the area is up to scratch. We may have discovered that choosing an investment is about much more than just location, but you still need to research it. Look at what we call the good solid fundamentals. We are not talking about properties with a nice aspect or lovely garden; we are talking about the things that will make your property tenantable now and in the future.
There are several issues that we take into consideration before taking on any investment for our clients. Does the area have good schools, shops, employment? We also look at investment levels and transport links. In our investment reports we also look at things like the average credit ratings of people living in that area, comparables and much more. Make sure you do the same.
So location is important when building a successful portfolio but it’s only one piece of the research pie. Paying attention to the fundamentals will make sure your chances of building a successful property portfolio are greatly enhanced.
Book a time to chat with one of our Asset Managers and see how we could help you build a successful portfolio. And make sure you get our free property investment emails to build on your knowledge by signing up below.