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The surveyor will assess the value and the rental potential – this can sometimes be different from the developer’s so it’s a vital stage to go through before you exchange contracts.
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Should You Buy Investment Property?
Some questions you’ll need to answer before you buy:
- Price: Is the property properly priced? Go on current prices in the market and if it looks over the odds, reassess the situation.
- Yield: What rental yield will it deliver? You need to make sure the investment property covers your mortgage/loan.
- Area: Is the area on the rise? – ie: new infrastructure or regeneration plans, which will boost values?
- Supply: What’s the supply situation like? – if there are lots of new-build investment properties going up the market may be saturated come completion time.
- Property Investors: How many investors are buying in the development? – too many will mean more competition for tenants.
- Rental Demand: What’s the rental demand like? Is this an area your target tenants will want to live in? Is the infrastructure in place? Is the rental market high?
- The Developer: Is the developer well-established? What’s their other work like? Are they NHBC registered.
- As a responsible tenant and to ensure you get your deposit back you can book a professional clean from EP Cleaners for an End of Tenancy Cleaning now.
- The Property: Buying investment property demands a degree of imagination, you will need to be able to visualize the layout of the development, of the block, and of the property.