Where to source available investment properties
Finding the right property for investment can take a little time, but the profits make it well worth the effort.
There are many ways to source available properties, and you may find that once you’ve been in the business a while people will come to you with potential deals. But it always pays to do your own research, and there’s nothing more satisfying than signing the paperwork on a property that you’ve discovered yourself.
Research up and coming locations
When property investors look for areas with potential, they’re not necessarily looking for the cheapest nor the most expensive locations. What they’re looking for are places where people are likely to want to live.
What is it that’s appealing about a particular location? Are there lots of thriving businesses in the area? Is it a quiet, tranquil village, but with excellent transport links into the main city or town?
Think about the tenants that will be attracted to the area. Are there students looking for accommodation near universities or young professionals wanting to live not too far from work? Or are there excellent schools for young families?
It’s all of these factors that will help you decide whether a location is prime for investment.
Cast your net wide
In many cases, property investors look close to home as they know the local market well and it’s easier to spot potential bargains. And if you’re planning to manage your own properties, it’s obviously going to be much easier to do if they’re nearby.
However, your hometown is not always the most lucrative place to look for property deals, so you shouldn’t be afraid to cast your net wider. There are many hotspots throughout the UK that are prime for investment thanks to regeneration plans and new travel links.
We’ve looked at some of these in our post: Looking for a city property investment? This is worth another read if you want to find out what makes these cities worthy of consideration by seasoned property investors.
Of course, each location may experience economic fluctuations, which is why it makes sense to invest further afield rather than putting all your eggs in one basket and just looking at properties closer to home.
To find out more on this subject, read: How do you make property investment work further afield?
Check out refurbishment properties
Another potentially lucrative area to investigate is properties in need of refurbishment. These are the type of deals that your typical buyer may well steer clear of if they think too much work is involved.
And as an investor, you also need to tread carefully. On the one hand, you can negotiate a better price on properties in dire need of renovation as they’re going to take further investment to bring up to scratch.
On the other hand, you need to make sure you’re going to see a prompt and profitable return on your investment. The trick is to make sure your purchasing price is low enough to cover the refurbishment and any over-run costs.
The final value of your refurbished property should be at least the purchase price plus the cost of work, and hopefully some profit. And it needs to yield a good rental income.
If you’re considering investing in a refurb property, read: Is refurbishing property the right investment for you?
Are you ready for land assembly?
Of course, another lucrative strategy for property investors is land assembly, where life-changing profits can be made.
If this is an opportunity that you’ve often thought about but have been unsure where to begin, then you should register for our course:
This is a brand-new course that will take you inside the mind of a developer and reveal some of the secrets of this little-known strategy.
Dates: 15th & 16th September 2018
Venue: Park Inn Hotel, Heathrow
Would you like to learn more about our property mentors?
At PMA, we run a Mentoring Programme to show you how to invest in property as well as a range of courses aimed at beginners and seasoned property investors.
Join us on one of our Discovery Days to find out more.
Book Now! Limited to 20 main delegates.