The property market has become an obsessive past time in Britain. Speculative musings can be found on nearly every news source asking the question, ‘What will happen next?’ Here are the 6 things every landlord should check before buying an investment home:
From local amenities to nearby parks and playgrounds, the area the property is located in can prove to be a real asset to the home, or can be a deterrent. Look into things like the ratings and ability to get into the local schools, the amount of the council tax, the ability to get a take away, and even the flight paths. If you aren’t familiar with the area it makes it hard to know if there are planes which fly overhead or if your tenant would be able to enrol their children in the local school.
A stressful commute has been known to cause all sorts of frustrations including higher blood pressure, higher cholesterol and increased anxiety. Investing in a property near public transport or a reliable trainline can increase the appeal of the home, because of the location. Having knowledge of the ease of transport from the property can be a big USP when attracting tenants or future buyers.
3. Don’t forget to think about what a tenant wants
It is imperative that you look at investing in a property which will be for the type of tenant you’d like to have. If you are interested in students consider a property near a university. If you are interested in attracting a young professional in London consider a property near a central line.
Purchasing the property is only one financial aspect of this investment. It’s important to consider not just the price of the mortgage, but also what you plan on charging for your rents and what the annual costs of maintaining the property would cost as well.
It’s unavoidable that your tenants will need help from time to time. At the beginning there will be a large demand on your time if you plan on managing the property yourself. From marketing to potential tenants to overseeing the viewings, it can feel like a full time job. Even after the property has been rented the best appliances need repairing and tenants can lock themselves out of their home from time to time. So it’s important to consider how you value your time and if having a professional property management team take care of your investment is the best choice for you.
From flooding risks to sinkholes, not all properties are on solid ground. It’s imperative to get the necessary searches and perform your own research in order to know how at risk your investment might be. Although flood zones or sinkholes might be anomalies, it is always better to be safe than sorry.
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Photo source: geograph.org.uk – wikipedia.org – flickr.com/photos/76657755@N04