Purchasing A Property To Rent Out | Pip Milburn
With so many apartments to choose from, it is important to be prepared. This is especially the case if you are buying an apartment for the purpose of making a profit. This is why we have put together this post – to give you a helping hand. Read on to discover some of the important questions to ask before buying.
Is property maintenance included?
It is always important to discover whether property maintenance is available for the apartment complex. It is likely that there will already be a company hired to take care of this, especially if there is a communal garden. Therefore, you will want to find out how much this is going to set you back every month.
Does the complex include a lot of holiday lettings?
If you are purchasing for an investment, this may be exactly what you want. You may want to discover whether the apartment is a viable choice for student accommodation, as this often represents a good investment area for landlords.
Are there regular disputes?
You don’t want to purchase an apartment in a toxic area. If there are regular disputes between property owners, you may want to consider looking somewhere else.
Is the price negotiable?
You will find that a lot of the properties around the country are negotiable on price, especially considering the current economic state, so it is always worth asking to see if you can save yourself a bit of money that you can use on another area of the purchasing process.
Mistakes Made When Buying A Property For Investment Purposes
If you rush into the decision, and you end up with a place that you don’t like, you are only going to make it more difficult to turn your property into a great investment.
One of the biggest mistakes that people make is purchasing a property in an area simply because they have enjoyed vacationing there. This is not always the worst solution. However, you need to remember that a holiday is very different from living at a place. If you want to appeal to long-term renters, rather than the tourist market, you need to look at it from a different perspective.
Another common error buyers make is agreeing to the contract without fully understanding it. You need to ensure the contract is clear, and you need your solicitor to check that everything matches up. Read every line of the contract and don’t sign anything until you are 100 per cent satisfied.
Another common blunder is failing to do your calculations regarding the financial side of things. When doing this, you need to make sure you account for periods whereby your apartment may be empty or you are in between tenants. You also need to make sure you have enough money available should any repair or maintenance be required on the property.
So there you have it: an insight into the main areas of consideration when buying a property for investment purposes. We hope this post has been useful to you!