Buying investment properties is one of the safest financial decisions you could ever made, and regardless whether you want to buy to let in order to maintain a regular rental income or want to modernise and improve the property to maximise the income when it is finally sold; the initial money invested is guaranteed against inflation and possible currency devaluation; however, the potential for any income from investment property is a meticulous process that requires research, time and an initial capital that not all future landlords can afford.
Investment properties are considered those who need considerable update and repair; this goes beyond just simply decoration; in the majority of the cases structural surveys are needed to identify any building work that must be done to make it habitable; however, this is not always the case and the immediate attraction to many home owners and investors is the low price – they normally come with a heavy discounted tag due to the substancial work that needs to be performed, the problem is that not many banks or mortgage lenders are willing to take this risk; therefore, it is important that you have cash easily available in you want to play in the housing market.
There are many things that should be considered when buying an investment property; these are:
- Building Survey or Structural Survey: a detailed and comprehensive survey is fundamental to identify any structural problems with the property; as well as realistic costs needed in order to repair damages and make it liveable and attractive to potential buyers or tenants.
- Budgets from Builders: once the building survey has been performed, you will be able to contact some contractors to give you a possible estimation of the work involved to repair the property; you must add these costs to the price of the house as well as any other expenses involved when acquiring the investment property.
- Void Period: this is the period in which you buy the property and make the alterations needed – you must consider all expenditure will come from your own pocket as the house cannot be occupied during this period: council tax, electricity bills, gas heating, service charges and others will have an impact in your funds.
- Builders’ performance: it is important to add between 10% and 20% on top of the estimations giving from the builders, as there will be additional changes that will only be identified once the project has started; if not funds are available you might need a loan from the bank, which is probably not part of your original plan.
- Location, location, location: this is an important factor to consider; a run-down property in a nice and desirable location is recommended over a nicer house in a run-down area. Any alteration to the property in an area where everyone wants to live will provide better economic benefits and increase the profits from the sale of the house or rent charged to tenants.
Income property is always a good investment; however, you must do your research if you want to maximise rental income or profit from the sale of the house.
Property Development UK
Nine Elms on the Southbank is the biggest regeneration plan in Central London and possibly one of the best investment property for any investor for rental income or to generate a substantial profit once the area is gentrified and the property sold.
Amazon Price: $39.95 $21.34 Buy Now
(price as of Nov 12, 2015)