Before making a decision on where to buy, here are a few things to consider. A local estate agent will be able to talk to you about what is happening in your area and what types of property are letting.
Keeping an eye on house prices, as well as average rents, in the areas you’re interested in will set you in good stead for understanding local market conditions.
There are several ways Rightmove can help you to stay up to date on house prices and rents, depending on how regularly you want to be updated and how specific your requirements are:
When thinking about where to buy your investment property, always think about the following factors. By asking yourself how the area you have in mind would rank against each of these factors, based on your research, you will be able to confidently make a decision as to whether this is the right location to invest in.
Key factors to think about when choosing an area:
By now you know your budget and the area you would like to buy in, but which kind of property is best? Chances are, if you already know the budget and area that you’re interested in, this will automatically narrow your property options. However, in the instance that you still have many options available, think about the following factors to help you refine your criteria.
This list is by no means exclusive, but it should provide you with enough information to make an informed decision.
Key factors to think about when choosing a property type:
Properties in certain areas will offer larger yields whereas in others the yield might not be as high but the potential for values to rise is better over a period. What timescales are you looking at, a 30-year investment to supplement your retirement or instant rental income?
Some properties are in need or renovation or refurbishment and can offer the potential to add value if you are willing to do the work. Or there may be the opportunity to extend and add value this way. The costs of this work would need to be taken into consideration. Think also about whether you would be doing the work yourself or if you need to find a builder?
Estate agents will be able to advise on this, also these types of property are often sold at auction, so it might be worth checking out what is coming up.
On the other hand, if refurbishment isn’t for you or you don’t have the time, you may consider investing in a new build property. These can be ready to rent out, come with a 10-year warranty and generally low maintenance. There are also opportunities to buy off-plan with the potential to see capital growth in developing areas.
It is good to be clear on what market you are aiming for. Some people focus on renting out property near Universities to students. Others are looking for young professionals or families. Alternatively, you may be looking to rent out your holiday home in a popular destination. This will influence the type of property that is suitable and the returns you make. Again, an agent will be able to help with advice on the types of property that are in demand from each group.
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