You might think that the days of the property boom are over. But they are not. Quite simply, it is still possible to make a good profit on property investment. You just have to know where to look. There is still a massive shortage of supply for property. That means that buyers have to compete to buy. Properties are being sold before they are even marketed.
It is is a seller’s market which means only one thing. Demand is hot, and prices are going up. That means if you can buy the right property today, this time, next year it will be worth at least 10% more. And that is before you have done a single thing to it. That is, at least, five times what any bank will give you in terms of an interest rate. No wonder that property is hot. You will not be the only one to realise that. There is going to be competition.
How can you get in on the market? Here are a few tips to get you started. No matter if you are investing or wanting to buy a family home and get your foot on the ladder; this is for you.
Location isn’t everything, but it does count.
If you have studied the property market at all, you will have noticed one thing. Not all property is equal. Some areas are making money, and some are just cruising along. A few areas are lagging behind. There are even some still in negative equity from the last crash and boom. That is a fact. The information is there. It does not take much to research any area and street. Be wise and use the information. Find out where property is making money and where it is expected to rise.
Look for areas where demand is high. Those are going to be the places where people are moving. They are going to be the happening cities and the towns that surround them. It is that simple. They are going to be the places that students are heading to go to college and university. They are going to be the places where industries, warehouses and distribution centres are setting up.
Ignore those areas that have already had their boom. Look for where the overflow is happening. Locally that might mean an area where there are a couple of good schools that are showing progress. The only important factor here is the future. As a prudent buyer you are not interested in what has already happened, but what is going to happen next.
Don’t look at the affluent areas, look for the rough diamonds.They can even be the state houses where renters have become buyers. These often substantial houses is where the smart money is going. Invest in an area where transport infrastructure is happening. Take a look at council investment. Shopping centres and leisure parks are all signs that there is already investment in an area. These are the places to look.
Identify the right house.
Scour the agents. Get onto databases. Get yourself known. Don’t worry about the property that has just sold. The best place to be is on the contact list of the agent who wants to sell the next one. He or she will want to do it before it hits the market. It will cost them less. They might play the game, but if you are in a good enough position, then you will get attention.
Look at the property auction sites. Be wary, however, auction is a tactic used by agencies to offer everyone a very low price and then watch people thrash it out once they are on the hook. And if you have paid for a survey you will know the hidden costs. That means you will know what a place is worth.
A property bought at auction for twenty thousand less than its nominal value is not so much of a bargain, if it needs a new roof. It is even less of a bargain if it is at risk of flooding and does not have planning permission for an extension. Be wise and be savvy. Assume the worst while hoping for the best.
The right house is going to need some work.That is a fact. The trick is to know whether that work is superficial or substantial. If you have some skills then so much the better. If you know someone who can, then that could still work. The bottom line is if you are going to pay a tradesman to do all the work then you had better be sure of the real value.
Get your finance in place
Arrange your mortgage now. Shop around, get some advice. Get a feel for what is going on. If you are going to need a deposit, then this is the time you need to find it. If for some reason you’ve missed a payment or defaulted on a previous debt, you can still get a mortgage. It is just that you will need a larger deposit. Take a look at BadCreditMortgageBroker.co.uk to see if there is a way forward for you.
Never take an agent’s word for anything
Real estate agents exist for one reason only. To make a profit from selling a house as quickly as possible for as much money as possible. They are not there to make friends except with the seller and then only for a short while. If you’re a buyer, they will be all over you to see what your situation is. If you are cash ready or have finance in place, they will be smiling widely. If you are not in a chain then so much the better.
They will be your best friend until the offer is accepted. They will not feel obliged to tell you the truth about anything other than that which pushes the sale forward. You, on the other hand, want to get the property for a little as possible. This is a conflict of interests, except for one thing. You both want the sale to go through. There are several options open to you.
Get a damning survey and a very thorough solicitor.
Pay for the most detailed survey you can afford. It will tell you the house is falling down. This is exactly what you want. The estate agent will tell you it’s not worth the paper it is printed on. Your solicitor will advise you against going ahead. This is how you will get the price reduced. The agent will recommend someone he or she knows who will give you a fair price for the repair work. Get another quote. Meet the agent and the seller in the middle. They want to sell, and you want to buy. They will drop the price or; you will walk away.
Sign the deal and get moving
Once you have moved to completion, you have a choice. You can either get started on your renovations, or you can simply sit back and enjoy the fact that you now own a property. You are to all intents and purposes on the property ladder. If you are intent on moving the property on then, you will need to get down to work.
Make a budget and stick to it.
You know how much you paid, and if you have done your homework, you will know how much it is profitable for you to spend. You can spend as much as you like but will it be worth it? You need to know how much you can sell your new house for. This is where the estate agent, who will not mind at all, will become your new best friend. Your objective from now on is to sell this house for as much as you can get for it.
Do the basic repair work.
Redecorate, fit cheap carpet throughout and put in a new fitted kitchen and bathroom. Change the sockets, fixtures and fittings. Tidy the garden and attend to the exterior of the house. Give it a coat of paint and replace any missing tiles on the roof. Clean and update the guttering where necessary. Make sure the property is clean, light and empty. If you are selling, put the property on the market. All the hard work has been done. There are other options. You could rent the property for example. You could even be very happy to live in it.
Property is an investment. That has been the case for the last fifty years, and it is not about to change anytime soon. There are blips and downswings but overall buying a house will be the best investment you will make in your lifetime. If you have secured your finance and bought yourself a nice home then maybe the best thing you can do is to ensure that your payments are made on time. Focus on maintaining your credit rating.
The house is the house, and it will be your secure investment and home for as long as you want it to be.