How to know that the offer you are about to make on an investment property is worth it27 May 2014
Investing in bricks and mortar is universally regarded to be a great investment decision. After all, one can live in a property, rent it out and buy in popular cities (like London) where fantastic rental yields and great returns on investments can be made; particularly in this current climate. Areas such as Nine Elms Lane Regeneration , London Victoria, Westminster and Albert Embankment are seeing incredible once-in-a-generation transformations, with riverside apartments being snapped up by those both living in the UK and overseas. With London increasingly recognised as THE international global hotspot, and a safe and lucrative place to put your property – you can’t go wrong.
Here are a few tips we’ve come up with to help you ensure the investment property you’re set to buy is worth it and that the offer you’re going to make is competitive:
Research your market
Socrates said: “Know Thyself.” We say: “Know Thy Market.”
It’s vital to focus on the three ‘R’s – Research, Research, Research. Important questions to ask include: “How has the rental market recently performed in the area I’m looking to buy in?” “What kind of rental yield will I get?” What kind of profits have investment properties in said area recently achieved?” These are all very important questions indeed. Also, have a look around as to offers other investors placed on properties in the area. Consider all types – from studios to houses to different types of buildings – so you can fully grasp exactly how much people are willing to pay.
Location, Location Location!
There’s a reason everyone always goes on about location. It’s so important it can’t be emphasised enough. When selling a property or renting it out, the convenience of the property in terms of how close it is to transport links, amenities, entertainment etc; is the first question asked by tenants/buyers. London is such a great bet at the moment due to the excessive investment in prime areas. This is partly because the rise in riverside living has spawned an expansion of the fantastic facilities the UK capital is famous for, with developments becoming luxury complexes, with swimming pools, gyms and even cinemas inside. Transport links are popping up to accommodate this creeping development of upmarket living, making this fabulous city even more interconnected than before. We highly advise you look at living trends and invest your money accordingly. The way the landscape of London is transforming and the types of lifestyles growing in popularity, will give a strong indication as to where the next excellent hotspots are.
Know your tenant
Put yourself into the shoes of your potential tenant. Who are they and what are they looking for? With the properties mentioned above, they are likely to be young professionals, interested in the finer things in life and who want the best of London at their fingertips. They could be international tenants who both work and play hard which is why the UK capital’s so appealing. The great thing about Garton Jones’s properties is that they cater for a specific clientele. The apartments are beautifully decorated and often offer 24 hour concierge, with amazing facilities. They are great value for money for the right tenant – and are all ready to be occupied immediately. Such apartments are perfect for investors who are looking to rent out their apartments quickly and hassle-free.
Do the maths!
Whether you’re looking to rent out your property or sell within a period of time to get a good return, doing the maths is vital. Research the rental yield in the area that catches your eye and look at the kind of returns other properties have got that have recently been sold. This way you’ll be able to make a good judgement as to what to expect and where to invest.
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