The success to most property investment stories is research. Research is pivotal to making any significant decisions within property.
It is easy to think that researching should start and end with a search online, but to find profitable properties, this isn’t the case.
To help any landlords or property investors, we have created some top tips on how to thoroughly research the property market.
Before any researching can be conducted, it is crucial to get any finances in order. Finances must take the priority over anything a landlord or investor does.
To start, a financial situational analysis needs to be implemented to understand whether this new inventor is doable. There are a few questions that any investor needs to ask themselves to understand whether this venture will be correct and cost-effective for them.
- Does an application need to go in for a mortgage?
- What type of budget do you have?
- How will you finance this venture?
- Do you have the cash facilities to pay for it in full now?
- Is there any debt that needs to be taken care of before?
- Do you have enough money for a down payment?
- Should you choose creative financing methods? Such as a partnership
- Do you have a financial long-term plan to be able to support yourself through this venture?
When you breakdown each question, there is actually a lot to think about.
Once all finances have been ordered, then it’s onto the next step. Location, location, location.
This, behind finances, is again another key element to making a successful property investment. Whether you have no clue where to start or already know the types of areas to buy in, all investors need to be wise about which location to choose.
Online property websites are a great place to start (the likes of Rightmove and Zoopla). Property portals can show what types of properties are currently on the market. Another online tool that is necessary to use is mouseprice. The website allows users to look through past housing prices around different postcodes. Also, the tool shows a heat map of the current desirable areas to purchase property and the crime rates within different areas.
It is best to choose a location that is in high demand. These may be city centre locations that are near to public transport links, schools, universities and other large companies.
From deciding on the area to invest in and having all finances in order, the next phase would be to research into an investment strategy.
Within this strategy, a landlord needs to understand what is best for them and the best location choice. For those who are just starting out as investors, a more so basic strategy may be best rather than acquiring a riskier strategy.
Overall, an investor or landlord needs to have criteria to what their ideal investment would look like. In other words, asking yourself the right questions to understand the type of property and the purpose of buying the property.
For example, a landlord may decide to buy a four-bed semi-detached near the city centre of York. The purpose of this may be to target families or attract university students to rent the property.
Within deciding on criteria, some thought needs to go into how strict a budget is and whether the venture is achievable.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.