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How to choose the right investment property? 5 simple tips to think about.

How to choose the right investment property?

Do you want to learn how to be a successful property investor? If you do, this is going to be of interest to you. You are about to discover the 5 simple tips how you can decide on the right property for investment.

One of the main problems most people faced when investing in property is that they do not know what is the best property for them to buy.

When they have the capital or the finances in place to invest, they will hesitate and uncertain whether to invest or not. They are afraid that they might make the wrong move. This is a common issue among most first time investors, but can be solved by applying the 5 simple tips below.

1. Know how much you can afford

Yes, before you even start to invest, know how much you can afford and how much capital you have. You do not want to put down too much money into the investment and end up having not enough cash flow for emergencies such as any major or minor repair. And make sure you have a surplus as a buffer zone for the vacant period. Remember; never stretch yourself to the maximum.

2. Have a strategy and stick to ithow to choose the right investment property

Needless to explain much, you have to understand the property market in that particular area very well and you have to judge whether it is going to be a good buy. Usually people will buy below market and sell a little bit higher, or just wait for capital appreciation or rent it out. You can always check with your local bankers to get a valuation of the property price and use this number as a benchmark.

3. Perform the necessary investigation

Make sure you have an inspection list and know what to do when viewing on a property. Just follow through the list and inspect each of the items so that you are not buying something that will end up eating your money. You can also check with the local people there or the neighbour to get a clearer picture of the common problems that they faced.

4. Avoid scams and fraud

You will hear cases where people get conned by property agents. Do not let this stop you as there will be scams and fraud in every investment or businesses out there. You just need to do your homework and make sure you engage the right agent and are buying from the right owner. Put everything down into black and white, every party has to provide the necessary documents.

5. Understand and take calculated risk

Like what I have mentioned above, there is a risk in every form of investments. You just need to learn how to take calculated risk and put the risk out of the game. It will be difficult in the beginning, but once you started to understand the rules of the game, you will become better in real estate investing and take the risk out of the game.

If you need more information on buying the ideal property for a buy to let mortgage please email info@mistoriasales.co.uk or call us 0161 707 6106. Mistoria Estate Agents dedicates it’s efforts to selling property for private clients and sourcing property for the property investment market. We have a dedicated team of property professionals with a wealth of experience whose remit is to introduce buyers to our clients.

 

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The guide to student property investment in 7 steps

Introduction

The guide to student property investment, the 7 steps you must consider before investing in student property and why we believe HMO’s are a more secure investment than student pods.

The guide to student property in 7 steps

Step 1; Cost Per Meter

A HMO investment costs less per square metre than a student pod investment. Student pods (psqm) can sometimes be as much as 100% more expensive than an equivalent HMO property. With your HMO investment you receive the security of your assets and they are fully mortgageable, pods are not. HMOs are also much easier to sell. In addition to these factors HMO’s can also return up to 3.0% higher yields in the first year alone, with the potential to increase this in years going forward.

Step 2; Specification

Cheaper student properties tend to have significantly lower specifications and are much smaller than others. Factors such as these will result in minimal rent demand; hence investing in the more expensive units can be more advantageous in the long run. These properties are usually finished to an extremely high specification, resulting in higher returns and also require less maintenance. Always ensure when deciding which property you are going to invest in, that you consider the value for money aspect and always remember that “you get what you pay for”.

Step 3; Location

Ensure your property is in a prime location. Do your research and find out exactly where it is and how accessible it is for students to commute to their University. Where are the local shops, supermarkets, pubs, bars and more importantly public transport? Aim for a property within a 15 minute commute from the University, anything further than this is a waste of time as students never want to travel too far. Finding a property with a 15 minute commute compared to one that is 30 minutes away can be the difference between you having 100% occupancy rates or not.

Step 4; Developer

Try and use developers that have a history of building Housing for Multiple Occupancy properties. Check their property portfolio; are they of a good standard? Have previous clients been happy with the results? Have the properties sustained their high standard? All of these factors should be taken into account when looking for a developer. It is vital you check all of this, as even the smallest mistake in development can result in lower occupancy rates and problems with the maintenance of the property which in turn could result in the loss of investment returns.

Step 5; Overseas Students

With the number of foreign students in the UK rapidly increasing, this rising number of overseas students and their greater availability to higher budgets means they will only live in the highest quality accommodation. In general student accommodation isn’t always of the highest quality, make yours different from the rest and give people a reason to rent from you. There is an ever growing demand for investors to provide these types of properties.

Step 6; Managing Agent

Finding the right company to manage your property is essential in the investment process, you must ensure you chose a credible company. Some investors chose to manage their own properties, which would result in higher net returns, however if you do not have the time to attend to regular maintenance issues, credit checks, tenant finding and advertising, choosing a respected company is your best option. We are happy to advise on this as we know how much time and effort really goes into managing a student let.

Step 7; The Law

You must ensure all legal aspects are covered. There are many things to be considered when purchasing a HMO property. You must ensure you register the property to be licensed, a requirement for all “Houses in Multiple Occupancy”. There are also many standards that have to be met in order for it to be registered, for example, the rooms have to be a certain size and fire doors must be fitted. As with any property you need insurance, but this would be insurance tailored to this type of property not just general house insurance.

You must work with the right partner to ensure you have all of the legal elements in place or you may be liable to fines or other legal actions against you.

If you need more information on buying the ideal property for a buy to let mortgage please email info@mistoriasales.co.uk or call us 0161 707 6106. Mistoria Estate Agents dedicates it’s efforts to selling property for private clients and sourcing property for the property investment market. We have a dedicated team of property professionals with a wealth of experience whose remit is to introduce buyers to our clients.