When investing in property, it’s
easy to get it wrong. Before I was a lettings agent, I bought a new build 1 bed
flat because that’s what everyone else seemed to be doing. I still have it –
mainly because no one is going to take it off me for the price I paid for it!
You live and learn. But it’s
important to remember that you make your money when you BUY a property, not
when you sell it. If you buy at the wrong price, it’s more or less impossible
to rectify that going forwards unless a rising property market saves you.
If you buy sensibly, you can
also expect to sell sensibly if you ever need to. Try to avoid:
• Simply overpriced. Once you’ve
established you can buy a nice 2 bed property in a given area for £X, don’t pay
£X + £5,000 for one because you’re impatient. If you overpay at the point of
purchase, you’re playing “catch up” regarding the value of the property from
day 1 .... So DON’T overpay!
• Needs work, and this isn’t
reflected in the price. DON’T be put off by properties that need work, as these
are often the best buys. But DO ensure this is reflected in the price. If it’s
£X for a nice one, its £X minus £5,000 for one that needs a kitchen and
bathroom.
• Unrealistic rental price. If
you’re buying in an area where flats rent for £550.00, don’t expect yours to
rent for £600.00 on the basis that it’s just been painted – expect it to rent
for £500.00 if you don’t paint it!
• Lacking key features. If you’re
buying in the suburbs to attract the family market, don’t buy the one house on
the street that has no garden, or no parking. Families want gardens!
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