Investing in property can be highly lucrative, and the best way to enjoy it and make it as profitable as possible is to know your stuff. Like so much in life, there is an element of luck involved, and to a certain degree, you make your own luck. That said, if you like to err on the side of caution, investing in property can give you a lot of security. There is also vast scope for creativity; whichever approach you take, do it your own way.
Sometimes the biggest obstacle to doing anything is simply deciding what you are going to do! In the world of property investment, you are spoiled for choice, and each property offers unique opportunities. So before you make up your mind, consider these tips. Then remember the golden rule: always leave a bit of space for manoeuvring in case your plans change!
Buy-to-let or buy-to-sell?
Do you want to be a property developer or a landlord? There is a constant stream of homes arriving on the market that need modernising or updating. Once completed, who says you can’t do both? Let your refurbished property for a few years, then sell it for a profit!
Get to know the market
Ideally, try to buy in an up-and-coming area. The scope for growth in value is greater. This does not mean you have to find an amazingly exclusive area enjoying mega growth. Often, an area that is moving forward and steadily improving is just the ticket when finding an affordable property. Spend a little time getting to know the areas you are considering investing in.
Have a plan
Planning is a good way to keep you on the right road. Make lists and make notes for moving, refurbishments, and costing, include calculations for rental yields and a list of legal requirements, and tick each step off one by one as there is a lot to remember.
Familiarise yourself with the law
Certain safety standards must be met; these can include smoke alarms, gas certificates, portable appliance testing, an Energy Performance Certificate, and building control certificates for structural alterations. If you let your property, you must conduct Right to Rent checks as a landlord.
If you let your property, this is a no-brainer. There are so many policies you can opt for, from malicious damage by tenants to loss of rental income. Make sure any tradespeople working on your property have the correct insurance.
Finding the right tradespeople to create your property vision can mean the difference between making a good profit and losing money because they don’t finish on time.
If you plan to let your property, calculate the rental yield, which will help you calculate your return on investment (ROI). There are many rental yield calculators available online. If you are developing a property, create a spreadsheet or use a property development budget template. Always leave a little aside for the unexpected.
Make the most of your property’s space
Renting or selling make the most of the space you have. More rooms mean more rent or a higher selling price. Have you thought of converting a modest-sized home into flats?
When you decide to short-term let, flip, or buy to long-term let, extend, let holiday homes, convert, refurbish, or invest in green, professional, or student sectors, stay clued in to everything from interior decor (keep things neutral and simple) to changes in the law and the latest property market trends.
There is a lot to think about when investing in a property to rent. Durrants offer two different levels of service based on your requirements; a Let and Managed Service where we take care of the tenancy for you, or our Let Only service if you prefer to manage the tenancy yourself. Find out more here and book a free rental valuation.
Or are you looking for a great investment opportunity? Get in touch with your nearest Durrants branch. We always have properties available across our five branches that may be of interest. If you’re looking into developing or extending a property, why not get in touch with our Building Consultancy team. They can help with planning, architecture and surveying matters.