Before anybody invests in a new property investment there are several factors to take into account to make sure your investment will be profitable. Without doing your research there is an increased risk with property investment and there’s a chance you’ll not achieve your goal!
Here is our property investment checklist that we encourage all clients of Mobus to carry out before entering into a property deal:
Check Past Prices:
Researching value of the properties that have been sold in the area in the past will help you to understand the market trends. You can also research the average rental value for properties in the area to give you a clearer understanding of what sort of returns to expect on your investment.
Check potential for growth:
Another important area to check before investing in property, if there is very little potential for growth in the market then the investment may not seem as appealing. On the up side though, if the market growth is on the rise then it may be the perfect time to invest. Timing will be of the utmost importance here.
Amenities in the area:
Another aspect to identify is the number of local amenities to the property, including location and schools in the area. If there are lots of local amenities, this could make the property more desirable and in turn increase potential rental income and/or resale value.
It is important to research what the transport links are like for the area in which you are thinking of investing as this can have an impact on the value of the property. If the area is joint to major cities with quick and easy transport links then the possible demand for properties in this area will be higher and you can expect to a greater return on your investment. If the property is isolated and has fewer major roads, transport to connect to larger towns/cities then returns might be lower.
As with both the local amenities and transport infrastructure, the property’s location in respect to local employers is also important to consider. If there are major employers in the area then demand for the property could be higher than opposed to an area with fewer employers, this in turn could lead to greater return on investment.
Checking council planning:
You don’t want to invest in a property only to find out it will soon be overshadowed by a multi-storey car park! So it is important to check with the local council for any planned building that could well impact your properties views or overall level of appeal to prospective buyers.
Other factors include:
It is essential to have an understanding of any rates and local council taxes that may be applicable to the property if it is to be used for commercial purposes.
There are numerous factors that will impact upon the success and profitability of your property investment and you should never go into an investment ‘blind’, doing so will inevitably catch up with you.
Looking for a sound investment with great returns? Contact Mobus and let us guide you through the process.