Wherever you choose to look for property, whoever you speak to and whatever strategy you are considering, the same is always true...
...you must do your OWN research and due diligence!
It is no good just taking someone else's word for it on such an important decision as buying a property. However, this can be easier said than done if you don't actually know what research to do and how to do it.
I come across people every day who are confused about exactly where to look and what to look for.
So, I've decided to write a quick guide to the most important aspects of researching a new area and what to look out for in terms of due diligence. This will help you have a better understanding of what you are looking at as opposed to just sticking a pin in a map and hoping for the best!
Conducting your own due diligence
If you are already a more seasoned landlord, then I would imagine you already know most or all of this having found out from whichever source or through the school of hard knocks, however there may a couple of points which may help you further...
- Firstly, start with the end in mind - always have an idea about what you want to achieve from your property, is it cash flow, capital gain or a mixture of both?
- How far can you comfortably travel from where you live to build up your business, and are those areas going to fit your purpose?
- Think about the budget you have and where you can afford to buy as well as how much finance you can raise.
- Compare average house prices, monthly rents and yields to find your best area to operate in.
- See where you have the possibility of adding the most value to any property you purchase.
- Research historic house price trends over recent years to see which areas are showing the best potential for growth and which property types are in the most demand.
- Narrow down your search to your top 3 areas and go there to 'tread the streets'.
- Start to build relationships with both letting and estate agents to discover as much as possible about those areas.
- Contact the council and research online about what development, regeneration and opportunities are happening there.
- Choose your top area to start your search in earnest.
This is, of course not an exhaustive list, but hopefully gives you at least an idea of where to begin when looking for your next property to purchase.
I will soon be making an exciting announcement about a new project which we have been busy developing and creating over the last year. It is a fantastic new platform designed to help you in your quest to build the best property business you can given your current circumstances. It is not quite ready yet, so we will have some more news for you next month!
Make the most of these last summer days...!
Hazel de Kloe
Property Investor | Property Mentor | Speaker | Author
The contents of this article are for educational purposes only and we make no recommendation of any particular property purchase. The price of property can decrease as well as increase and you make any investments in property at your own risk.
Â© Why Property Works 2016 | www.whypropertyworks.co.uk
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