Buying an investment property is a big financial commitment.
And following a property sale, all parties involved should feel that they have received a fair deal. Often it is a daunting task, one error in judgment could potentially cost you an unprofitable investment.
Questions to ask yourself when entering the London property market.
Am I able to afford an investment property?
If you are considering buying a property for buy-to-let, get preapproval from a lender to budget correctly. This will give you an idea of what your mortgage repayment will be and the rental yield potential of the property. Also, take into consideration other costs like estate agent fees if you are making use of one.
Prospective buyers should know that most investors do not build a property portfolio with spare cash. They obtain more properties and keep buying new homes by well-planned and executed cash flow.
Where should I purchase an investment property?
You are already thinking like a true investor if you are thinking about location. The trait of a good neighbourhood is a growing population, strong job market, development plans in the area, low crime rates and near transport for commuters.
What kind of investment property should I have?
There are various options when it comes to real estate investment. Investing in a rental property will ensure a rental income with the option of selling your home at a stage when property prices are optimal.
A fix and flip in contrast will provide quick profit. The ideal strategy for you will depend on your expectations and financial allowances. Land and property development might initially require a large amount of capital but promises favourable gain.
Questions to ask yourself when selling an investment property.
Is it a good time to sell my investment property?
Are you familiar with the phrase, "Don't wait to buy real estate, buy real estate and wait"? This is one of those cases where it is a good idea to consult with an estate agent. Professionals will be able to accurately establish your houses price.
What steps should be taken to put a property up for sale? 1) Get an estate agent 2) Get a home appraisal and home inspection 3) Have realistic expectations 4) Maximize profits when selling by making updates and giving your property a facelift
Dos and Don’ts when buying and selling investment property.
If you are a potential buyer - do not be a "no show". Sellers work hard at preparing a property for viewing (or at least smart sellers do). It is good etiquette to show up for appointments.
Refrain from pointing out minor details that can easily be fixed when viewing a house. The seller is most likely fully aware of the issue.
Buyers should not renegotiate after they have already signed documents. Avoid this kind of cognitive dissonance by sticking to the deal.
When you are selling an investment property, be realistic. Setting unreasonable prices will lead to your own disappointment.
Sellers, be transparent. Avoid covering up property defects because you are likely to get caught and lose profits to lawyer fees.
If you are not really interested in selling a property, do not list it.
If you are looking to grow your property portfolio and confidently buy and sell, sign up with a property service provider with specialized sales progression teams to guide and assist you every step of the way. You will gain access to exclusive and finely curated off-market property, distressed sale, and repossessed property. Repossession houses are often available at property auctions, estate agents are usually first to know about these.