What is a Good Property Investment?
Whether you are new to the buy to let market or you already have a property you would like to let, President Properties can help.
With an extensive knowledge and understanding and many years experience in the financial property investment sector we are happy to help you in building your property portfolio. We appreciate there are many different reason for investing; a pension provision, to secure future school fee’s for the children, a better lifestyle, to supplement your income on a monthly basis. Whether you are new to the buy-let-market or already have a large investment portfolio, when looking to evaluate a buy-to-let purchase there are a few key pointers to help you make the best investment possible.
Call us for more information or advice on how to build and grow your property empire 0208 6766 292
We have all heard it so many times before however most investors still make a very common mistake they purchase there buy to let property either close to their own residential home, or in an area which the media has deemed as a ‘hot spot’. Although many of these investments will make a reasonable return financially, the likelihood is that you are not living in any area which is increasing the most rapidly in price.
Also whilst the media has got hold of the information and drawing every single investor’s attention to that area the smarter investors will have made their money and already moved on.
What do President Properties advise?
Look for areas where there are changes about to occur i.e. regeneration areas or the transport links are about to improve. Not only do you want your property to make a return on a monthly basis, but you also want the maximum return in capital appreciation.
President properties specialises in Honor Oak Park, Forest Hill and Sydenham where there are enormous changes set to take place. These will affect the local economy. The roll on effect will be a higher demand in the area and with a shortage in supply of property the prices will only go in one direction, up! The best part.....it’s still very much a secret to the media!
Once you have allocated the potential investment area then you need to consider the location of the property. Here is a checklist to help you:
Many investors attach a lot of emotion to the buy to let process. The most common quote I hear is ‘I wouldn’t live there, so why would anyone else’
Remember you are in a fortunate position where your annual income is higher; therefore you can afford more and therefore – yes you wouldn’t live there. However if your prospective tenant has a budget that they can afford you must make sure your property is the finest within that price bracket!
Which factors make a property desirable?
Will you need to refurbish the property or is it in a liveable state? Good paintwork/wallpaper, carpets, condition of windows. These are points that may put off a prospective tenant. Also these factors may cost you money down the line!
The first two rooms prospective tenants go into are the kitchen and bathroom. Are they modern, working and clean? Remember you are going to have to pay to have these updated if there are in a poor condition. However you are not living there therefore it is not imperative that they are up to your personnel standards.
The property should be ‘equal ‘in size. The bedroom should be a good single/double. The living area should accommodate the number of tenants that you propose to allocate within the property. Remember you are probably never going to live there, look at the property through a tenant’s eyes.
A garden or balcony is highly advisable. Although in reality you may not be able to charge more rent if the property has outside space. It may give your property an edge over others on the market. The aim is to have the property let for as many months of the year and all costs minimise void periods, as you will have to cover them with your own money.
In some cases you as a landlord can put a slight premium on a property if there are allocated off street parking spaces.
However similar to the outside space situation, it will give your property an advantage over the competition.
We can walk you through simple and effective formulas to help you to work out your potential buy to let yields. Contact us on 0208 6766 292