If you are looking to grow your property portfolio or you’re a first-time investor, finding the right property can ensure a good return on the investment. Here are a couple of key things to think about:
1. What’s your budget? How much do you want to spend and what return can you expect on your investment? Check the market and see what the prices are for both sales and rentals. Do your calculations before you start to look.
If you’re a cash buyer then you’ll be more attractive to the seller and can often negotiate a good price for a quick sale. Speak to your estate agent. They will be aware of properties that have been on the market for too long and there may be a deal to be done. They will also be able to give you an indication of what the local rental market is like. There’s no point buying something that will take months to tenant.
2. Location is key! Location is all important in the rental market. When it comes to London rentals, whether you’re looking in Hendon, Finchley, Colindale, Mill Hill, Edgware or Golders Green, the first question a tenant asks is “how far to the station?”
The dream is buying at the bottom of the market just before an area goes through a regeneration, making your property more valuable and increasing the rental value. Look at future plans for an area but remember you may have to wait some time before you see capital growth.
3. Ask around and get advice. We always recommend talking to other investors, whether it’s a family member or friend. They’ve done it before and will have information and knowledge that is invaluable. Speak to your local agent. Make sure they deal with sales and lettings as they will know the local market better than anyone. They will also know what sort of property is most in demand on the rental market in their area.
We wish you luck in finding the right property – and don’t forget, if you haven’t managed a property before, it’s harder than it seems and probably best to get a good agent on board. At Belvoir Hendon we work with a number of investors and would be delighted to discuss your options with you. You can contact us on 0203 875 600 or hendon@belvoir.co.uk.
