Whether you are buying a property to live in, as a buy to let investment or to do up and sell, the same sort of rules should be applied when choosing the one you want. People who rent will look for much the same things in a home as those who buy – and can be equally as picky.

There is also plenty of choice on the rental market, as much as there is on the sales market. It is important, therefore, that a property investor chooses very carefully to maximise rental income.

In property, the old adage “time is money” is especially true. When buying a property to let, it should be ready for the tenants to move into as quickly as possible. The quicker the tenants are in, the quicker you begin to earn income and the investment starts to pay off. Therefore try to find a property that does not require extensive building work or renovation, unless the asking price makes it an attractive proposition.

If you’re more into property development, however, that’s different. The fundamental principal here is to buy low and sell high. A property that is going cheap but requires extensive work is more suited to the property developer.

Nevertheless, buying well will limit the risks and the property chosen must at least have the potential to meet the desired requirements of a desired home – even if it requires major renovation.

One good tip is to buy in an area you know – that will save you time in researching new areas and give you the reassurance that, while you might not yet know WHAT you’re buying, you at least know WHERE you’re buying. If you live in Manchester, buy in Manchester.

The same questions can be asked of all properties and by using the following checklist you can weed out the bad buys and identify the good. Find out:

– If it is lease or freehold and, if leasehold, how much the ground rent is
– How much the council tax is in the area
– If there is allocated parking and, if not, how easy it is to park
– What the neighbours and local schools are like
– If the area is noisy or quiet
– Whether or not the property has central heating
– If there is a private or shared garden and, if so, what aspect it is
– How good the transport links are and how far it is to the nearest railway station
– Where the nearest shops are
– If the property is tied up in a chain
– How quickly the owners want to move
– If any building work has been done since the owners moved in

Many of these questions can be answered by your local estate agent so if you’re buying in Manchester, talk to a Manchester estate agent. More than one, in fact, if you can.

If a property is appealing, make several trips to view it and take tradesmen who can advise you on what work is required and what it is likely to cost. Also, remember that new kitchens, bathrooms and carpets can point to superficial improvements that hide more serious work to be done.

If you want to buy a property to renovate and sell on, check how long it has been on the market. If it is a long time, there may not be a lot of profit to be made or someone else would have snapped it up. Check the history of a scruffy – and therefore cheaper – property. It may have had a succession of landlords, all doing the bare minimum in repair and upkeep.

Before buying, consider different ways of achieving a profit – often known as the exit strategy. Painting and decorating can send a property’s value soaring without putting a serious dent in finances, whereas conversions and extensions will require a bigger budget investment and the services of qualified professionals like surveyors, architects and engineers.

Author Bio: Trevor Richards is writing on behalf of Shepherd Gilmour, Manchester estate agents.

Category: Real Estate
Keywords: property investment, buy to let, property development