As a Dundee landlord myself, I thought I would share some of my rules/tips on finding the right investment property for you in Warrington and its surrounding areas.
Rule 1 – LOCATION.
My number 1 rule is invest in a town you know. What better town to invest in than the town you grew up in? Now you will know which areas are high in renters and which areas are high in homeowners. You will know where the schools are, local shops and most importantly the commuter links. If that’s not possible or you think you can get better returns elsewhere the make sure you have a good local source of dependable information, not just the internet but someone you can talk to.
Think about the sort of tenant you want to attract – if you are looking for professional tenants then you will need to look at properties, which are close to bus/train station etc.
If you are looking to attract families then you may want to look at property that’s away from the hectic town life with noise and traffic etc and find somewhere, which is close to shops, schools and parks.
Dundee and the surrounding area offers plenty of areas suitable for both and these locations are all great for rentals both Families and Professionals as town is not too far away but far enough from all the hustle and bustle.
Rule 2 – MOTIVATED SELLERS
I’m not sure what you think of when you hear motivated seller but what pops into my mind is someone who will take a very low price for a quick sale, possibly time for that ‘Cheeky Offer’. When I say low I mean anywhere between 10%-30% below market value.
Finding these motivated sellers is not easy, you can start by looking at how long a property has been on the market, if there have been price reductions etc. Late in the year or in a slow part of the season seems to be a good time to negotiate the price down on a property, as people want to be out and in their new home for Christmas.
Another motivated seller is usually someone who has inherited the property and just wants to move it on as quickly as possible, sometimes these kind of properties need some modernisation, but definitely worth considering.
Rule 3 – THE FIGURES
So we have established the sort of tenant you want, you now have the location and a list of motivated sellers. Now you need to make sure all this stacks up financially. At the end of the day you are in this to make money first last and always, this is a ‘head’ decision not a ‘heart’ decision.
Make sure you do plenty of research on the sorts of rents your potential investment property can achieve – my advice is to drop me an email and pick my brains (for what is worth).
My office is in central Dundee, we have managed, sourced and rented property in the area for well over a decade and I also own and rent my own properties in the area. You will also need to set a buffer aside for unexpected expenses, usually this is general maintenance, safety requirements etc, but we have had the odd boiler needing replacing which requires forward thinking.
Rule 4 – NOT A GET RICH QUICK SCHEME
The Dundee property market has gone up and down in the last 15 years and it’s very difficult to predict what the changes will be and if the prices will change, property is not a Get Rich Quick Scheme, always plan medium to long term. As a Landlord think about the long term goal. Use this as a plan for the future and the short term ups and downs will not affect you as much.
Rule 5 – UNDERSTAND YOUR MARKET
This is similar to Rule 1 (location) however you can never do too much research, ring other landlords from the area, talk to local agents, if an agent responds with the ‘were to busy to chat if you haven’t got a property to let right now’ then do you really want them managing your most valuable asset. As I say you can always email me, we can chat over the phone or whatever about the pro’s and con’s of particular properties, area etc.
