If you’ve decided to buy a property as an investment, then you’re probably wondering what you need to consider. Buying a property as part of an investment – whether it’s simply to add to your portfolio or it’s a pension investment – is a big deal and is something that should never be rushed into. It’s important that you take the time to think carefully about the ins and outs of the investment and are clued up before you make a commitment.
The chances are that if you’re looking for a long-term investment property you’re looking for a house that has rental potential. Buy-to-lets can offer a great option for making a good profit from your property – it’s just a case of making sure that you know what steps you need to take in order to make a smart investment.
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Bearing that in mind, what do you need to consider when it comes to buying an investment property and what should the process involve? For everything that you need to know – have a read of the guide below!
Be selective about the area
It’s vital that when it comes to selecting a property to invest in that you are smart about the area in which you pick. What you want to do is choose an area that is likely to attract the kinds of tenants that you want to rent to.
It’s also important to think about factors such as transport links, local educational facilities, the amenities that are close by – hospitals, bars, shops, restaurants, and so on – and what the other properties in the area are like.
You need to select an area that not only will appeal to your ideal tennant but that will also be affordable for them and their price bracket.
Study the property carefully
Once you’ve selected an area, the next step is to find a property. It’s not just about finding a property the right size and price, it’s also important to think about the ‘health’ of the property. Don’t rush into putting an offer in on a property without doing the proper checks.
Not sure where to start? Call in an independent assessor who can assess the property for you and determine its ‘health’ and the value of said property. You might also want to consider having a drone survey done of your property, to ensure that you have a clear picture of the house in its entirety.
Ensure you have adequate insurance in place
It is vital that once you have found a property that you want to invest in, that you start looking at different insurance options. You need to make sure that the property is easy to ensure and that you are able to get all of the adequate cover that you might need for it as a landlord.
So make sure that you take the time to look into this aspect of things to protect yourself and your investment.
There you have it, everything that you need to know and consider when it comes to buying a property as part of an investment.
