ften people fail to make a
profit from property Understanding the local market
investment when they do not
understand the true market value One of the best ways to estimate
of their chosen property, both in the potential value of a property
terms of resale and rental is to understand the local
income. market. Fortunately there are a
number of tools to help you do
Investors hoping to purchase a this:
run-down home or off-plan
development and sell it on at Use the internet - The Land
profit when the work is complete; Registry
a practice known as flipping, are (landregisteronline.gov.uk) now
often caught out by over-inflated provide information on all
prices or under-estimated properties sold in England and
renovation costs. Wales since 2000. Through this
you can access information on the
On the other hand, buy-to-let property's value when the
investors can be seduced by registration took place. Remember
suggestions of high rental values this information will not be
and then disappointed when these up-to-date, but it may give you a
do not materialise. broad idea of what the current
owner paid.
Whether you're planning to flip a
property or buying-to-let, it is Browse estate agent listings -
important to ensure that you do Using the internet and local
not pay over the odds, as money papers, you can soon get an idea
saved on the purchase price will of the market value for different
lower your mortgage costs and types of property in the area. It
increase your profit margin. is also worth arranging a couple
of viewings, allowing you to make unless there is reason to believe
suitable comparisons when you that there may be a serious
have decided on a place to defect, in which case it is
purchase. likely that a recommendation for
a more in-depth survey will be
If you are planning to made.
buy-to-let, it is also worthwhile
speaking to a few letting agents The risk of relying on this basic
to try and gauge the general inspection is that the surveyor
rental prices that could be could miss an important defect
expected. Again rental listings which will be expensive to
on the internet and in local repair. By having a more in-depth
papers will help to verify the survey, the surveyor will be able
amounts tenants will be prepared to identify such defaults and
to pay. advise on the potential cost of
repair, allowing you to negotiate
Seek professional advice a discount on the purchase price
to cover this.
Once you have decided on a
property and feel confident that Take your time
it reflects the true market
value, it is advisable to carry Unfortunately there is no silver
out a full survey. bullet approach to accurately
valuing property and one of the
Although it is a requirement for secrets to running a profitable
mortgage lenders to inspect the property business is investing
property, the surveyor will not time and money to ensure your buy
look at inaccessible parts (such your property at the right price.
as the roof, floors and drains),
About the Author:
UK property search - Search for homes to buy and rent, plus information on property investment, buy-to-let, mortgages, insurance and plenty more - http://www.ukpropertyportal.co.uk
Source: www.isnare.com
