Below are some great property tips for Investor's that are considering a property investment in today's market. 
With Investor confidence seemingly at its lowest point for many years, it's vital that new investors consider the following property tips and experienced investors remind themselves of these important factors when considering a property investment.
Property Investment in today's market is certainly very different to only a few years ago. Many who invested in property for capital appreciation during the "boom" period, were caught out as we saw mortgage rates rise. It proved a tough period for these property investors as the rental income was not given enough careful consideration. However, those existing investors that have been affected may now be benefiting from falling onto their lender's standard variable rate (SVR) mortgage or a revert rate that tracks the base rate. This has given existing property investors some much needed "breathing space".
Property investors are aware that current Loan to Value's (LTV's) require a larger capital outlay when purchasing a property and may even see the value of their property investment slide in the short term. However, the long term strategy of rental return is becoming more and more appealing as we wait for the market to climb. Investor interest appears to be picking up due to the fall in house prices, the rise in rents and the gradual improvement over mortgage deals. This is resulting in investors turning their attention to the benefits of rental return over capital appreciation.
For those who are adopting this strategy, the search goes on for a property investment that can meet these demands.
Below are some helpful tips to always consider, regardless of the economic climate.
Property Tips
1. Market research
Make sure you are aware of the potential negatives as well as the benefits of property investment. It's a good idea to speak to people around that have made property investments and ask them about their experience/s. If you are looking to invest with a property company for a hands free investment, research the sector they operate in, as well as the fees they charge. If you're leaving it in someone else's hands, it's vital you have peace of mind. There are some fantastic companies out there, but there's also many that simply do not deliver the goods.
2. Location
Location is vital. A major factor in a successful property investment is the ability to let the asset. Without tenants, the property is costing you money. Consider elements such as the amenities and the transport links in the area.
3. Do the figures
Remember that a buy to let investment isn't a property you are going to be occupying. It's an investment. Do not get caught up in the excitement of house hunting. Make sure that the figures stack up and after careful due diligence, the property suits your needs. Consider your potential mortgage payment, interest rates, rental income, refubs and bills. If needs be, websites such as "right move" and "find a property" can aid you the typical numbers such as rent in a particular street or area. There are also several websites that can provide you with an online mortgage calculator.
4. Look around and take your time
This applies to the lending as much as the property purchase. Don't just put pen to paper on the first mortgage deal that you think is "good". Speak to a specialist mortgage broker who can research the entire market on your behalf. - There's no obligation to use them, but they could save you money, which could improve the return on your investment.
5. Start small
Investing in property can involve huge outlays. Make sure you consider something that's within your budget rather than over committing yourself.
6. Tenants
What type of tenant would you like to occupy the property? if you were that tenant, what would you want? Remember, a family's requirements are likely to be different to that of a student. - Consider the correct decor/refub to suit that of your tenant. A well presented property that meets the demand of it's tenant, will give you the most chance of it being let consistently as well as fending off your competition. It can also allow you to earn the best rental income possible in that area.
7. Be realistic
We've all heard of property investors that have built portfolio's worth millions of pounds, but this doesn't happen over night. For some, it may never happen. Focus on the long term strategy for capital appreciation but remember that rental income can be very lucrative as it's in your bank account every month.
8. Consider looking out of your "comfort zone"
There are many property investors that like to invest in property in areas that they know particularly well. In a lot of cases, this isn't the best strategy to adopt. The comfort of knowing that you can keep an eye on the property is very appealing to investors, but if you consider hiring a letting agent, this problem can be alleviated. Consider looking at areas that offer a range of potential tenants. Alternatively, consider investment abroad if needs be. - But make sure you research thoroughly, especially if your knowledge is limited.
9. Price
As a buy to let investor, there is the potential for you to have bargaining power. As you're not part of a chain that requires your house to sell, it enables you to negotiate over price and potentially get a better deal. The Vendor (seller) can often be in a situation where they would prefer a smoother transaction. Your situation can allow you to capitalise on this in order to get the best deal.
10. Know your worst case scenario
Buy to let comes with no guarantees, just like many other investments. If it did, we'd all be millionaires. However, you should know what your worst case scenario is at all times. Can you afford the mortgage payment if the property remains empty for a period of time? Do you have the finances to cover any repairs? Try to answer as many questions like this, in order to mitigate your worries and ensure peace of mind.
11. What part do you want to play?
For many, a property investment is about renovating the property hands on to eliminate certain costs and taking pride in their purchase. For others, it's about letting their money do the work as long as the figures stack up. Being hands on may not be too challenging for one property if it's close by, but how will this affect you as you build a portfolio? Before you know it, it's a full time job. Decide what approach you'd like to take and stick to it. There are many companies out there that can provide you will all the services you need in order to keep it a hands free investment if needs be.
Additional tip:
Investment information provided by property companies can come in the form of an "investment guide" or an "investment prospectus". In some cases it can be very one sided in order to sway your decision and simply act as a sales tool. Do your own research and come to your own conclusions, or even seek financial advice.
How Diligence can help
Our investment partner's can help provide you with solutions to the points above.
Our overseas property partner has incorporated all of the golden rules in order to provide great opportunities for investors in today's market.
They offer market leading properties in desirable locations, discounted prices, properties with fantastic returns and provide all the necessary services to ensure a hands free investment for your peace of mind.
Why not have a look at the investment opportunities below?
Resort Investment
For an Overseas resort investment offering: - Desirable locations
- Discounted prices
- Superb rental returns
- Potential for significant capital growth
- Full management
Click here for more information on overseas property investments.
Florida Buy to let's
Finally, for very affordable Florida property investment offering:- Assets purchased direct from the bank's up to 60% below market value (BMV)
- Desirable locations
- Full renovated, let and managed
- Great yield and return on investment
Note: No investment is made with Diligence investments. All investments are made through Diligence partners. Our partner's will be able to provide you with further information in order to help you in your search for an appropriate investment.
We wish you every success, wherever you decide to invest.
