They say you make your profit when you buy a property, rather than when you sell it, as you are a little more in control of what you pay rather than what you are forced to sell for. With this in mind, why pay the high end retail price for a property just because it looks sweet and idyllic, when what you need is a property that meets all the financial and practical requirements of a landlord first & foremost?
It is so easy, especially for the novice property investor, to fall in love with a property and let their heart rule their head, and to become so emotionally involved that they lose control of their finances and let their emotions win. The most important message to convey in all of this is that all of us Oxford investors must buy well in the first place, because if you start the investment process in the wrong place, the rest of the mathematics that need to be in place to validate this transaction just will not stack up. If a property price is too high, and you just cannot get anywhere negotiating some money off the price, then there is one thing to do and that is walk away, there will always be another opportunity along soon.
The new investor often thinks that by paying more for a property they will get best financial results, but this is rarely the case. As stated in some of my recent blogs, some of the very best investment properties in Oxford are the ones you'd probably not look twice at. Yet if you do your homework right (or call me to do it for you!) you can hit big numbers, with the property giving you minimum fuss. Here are just a few of my top tips:
Price - do the homework! There are dozens of ways to ensure that you are not getting sideswiped by a inaccurate asking price. If the price doesn't add up, walk away, even if you have fallen in love with it. Remember that you wont be living there. Aesthetically pleasing is all well and good but keep your eye on the prize, that being the numbers!
Yield - ideally you want 5% folks, but, but, but don't throw it out if the figure is lower. The are 2 main considerations in any great purchase. Yield is one. Capital appreciation is the other. Again there is plenty of information, showing you how a property or area appreciates over the years.
The Property - Modern kitchen, modern bathroom, modern outlook! Tell me who on earth does not want a modern house and furnishings? Kit the house out well and you are guaranteed optimum rent and to let it quickly.
Location - This tops the list folks. You can have the most beautiful property in Oxford but if the location isn't right, it wont matter a jot. Seek advice on where best to buy (unless you know Oxford of course)
Efficiency - Take time to kit the property out with things that will keep it low maintenance. Things such as wood or laminate flooring will save wear and tear on carpets or a new combi boiler that will keep the property energy usage low for the tenant. Further to this is wall and loft insulation is also a good long term protection plan.
So there you go folks, but before I go, I now have an email subscription service ... at the top right hand corner of my Oxford property blog, above my picture is the option to subscribe to the blog .. getting all new blog posts delivered to your Inbox!