Making an investment in a property is a big decision that must not be taken lightly. Whether it is your first investment, or one of many properties, careful consideration is required to avoid the risk of a major financial faux pas !
The key to success is to do plenty of research. You need to decide what your goal is, i.e are you buying a property to renovate and sell on, or are you looking for a quick profit and to re-sell, or are you looking to convert / apply for change of use etc ? You need to decide where you are heading with a property investment before you buy anything and stick to your plan. Also, buy something you are comfortable with, there is no point in buying into a project you don’t believe in. Like it, but don’t love it – Don’t get emotionally attached to a property – using the property market is simply a money making venture for you so keep it at arms length and make sensible, rational decisions taking the occasional ‘reality check’ on your progress at every stage.
Arrange finance – what can you comfortably afford ?
Do your maths re investment versus renovation costs and potential yield / profit on resale
Select a suitable area
Decide on your target market that will generate the maximum return on your investment
Buy the property, tailoring the renovations in line with what your target market would expect
Most people will look in the window of an estate agent’s office to see what they have got available. However, if you want to find the best deals, you have to be a little more clever.
In some cases, you may have identified a property which is already unoccupied and has no obvious plans for future use. How do you find the owner? How do you approach them?
Let’s give you a few pointers.