Buying an investment property is a great way to make a lot of money and one of the best potentially investments out there. An investment property is essentially any real estate that you buy with the sole intention of selling on for more money and potentially renting out in the meantime.
Unlike buying a property for yourself to live in then, it doesn’t matter whether you like the looks of the property or whether it’s somewhere you would like to live.
So what does matter then? Simple: making sure that the space is a good investment that’s likely to increase in value over time and that you could potentially make more money from even before you sell it. To this end there are a few things to consider, so here we will look at some of the top pointers for choosing correctly.
Look for Superficial Wear and Tear
When buying an investment property, the single aim is to make sure that you make a profit. This means ensuring that you get it for less than you sell it for – so getting a bargain is just as important as being able to sell it at the end of the day. To this end an ideal property will be one that has lots of superficial wear and tear – damaged fascias for instance and poor plastering are great features for an investment property. Why? Because not many people are going to want to buy the property in this condition meaning that you can get a great price for it and then easily add value. Make sure though that the damage you find is indeed superficial and not going to cost you lots of money in repairing or prevent you from being able to sell the property. A serious mistake would be to buy a property and then find that there is serious structural damage that’s going to be very expensive to repair. Make sure that you have the property looked over by a surveyor and that you make thorough checks before investing.
Another thing that can help you to get a good price initially is to haggle. Look for signs of wear and tear and then use these as leverage to try and bring the price down. Make sure that when you’re buying you aren’t in any hurry – the person who has the most urgency will generally be the one who loses the negotiations.
When choosing your property you need to think not only about how much it is ‘technically’ worth, but also about how much you’ll realistically be able to sell it for. Like selling any product, you should make sure that there is a market out there for your property and that means ensuring it’s desirable, affordable for the area and practical. Things like close proximity to shops and extra features like balconies and hot tubs may be what makes your property sell, while an awkwardly shaped living room that makes decorating difficult might be what prevents it from shifting as rapidly as it should.
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