If you are looking to purchase your first investment property, you’re probably familiar with the
basics of mortgages, asking prices and stamp duty. This article is a guide to maximising
the benefits of your investment, what to look for & how to be best prepared!
Tip 1 – Location
Although a seemingly obvious point, buying in an up-and-coming location ahead of the
curve will enhance your yields substantially. Whether you are looking to renovate or buy
ready to move in, you can ride the upward surge of a desirable location, and then decide
if you want to rent the property out or sell at a gain.
Tip 2 – See it in person
Before making such a big decision, it’s a good idea to be in the know about the property
you are buying, and the surrounding area. If you can, visit the location multiple times, and
at different times of the day, to scope out the vibe, and check for any noisy neighbours
with motorbikes and so on. It would also be a good idea to arrange multiple viewing of
the interior of the property, to scope out any potential work it may need if you are looking to
refurbish or renovate.
Tip 3 – Budget
You will need to determine how much you can afford to spend on an investment property.
Your budget will massively impact the types of properties you can consider.
It is important to decide whether you plan on purchasing your investment property with
cash or if you need to finance it. This will also determine what company you purchase
from.
Tip 4 – Do the math
When buying a house as an investment, it’s critical to have a clear notion of how much
money you want to make, whether you’re renting it out to tenants or selling it for a profit.
Once you’ve determined where you want to put your money, the following step is to figure
out how much you need to benefit from your investment. Keep in mind that there’s a lot
more to buying an investment than meets the eye, such as maintenance and refurb costs.
Tip 5 – Tenants
When buying an investment property, it’s important to think about the needs of the
renters who will be living there. If you’re renting to young professionals, for example,
make sure the property has adequate broadband speeds. Consider the type of property
you have and the type of tenant who would be happy to live there.
Tip 6 – Letting Agent
After you’ve bought your home, you’ll need to decide whether you want to manage it
yourself or hire a renting agent to do it for you. Letting agents will charge you a fee, but
they will handle all of your property’s maintenance and repairs. You will make more money
if you manage the property personally, but you must be reachable at all times by your
tenants.