Tips from the Expert – Investing in Property

Wednesday, February 04, 2015 by

1. Pick an Up and Coming Area

Look at major infrastructure such as cross rails, new tubes or rail stations, these are good indicators of up and coming areas. Areas such as Ealing, Acton, Shepherd’s Bush and East London are all cases in point.  

2. Choose Areas with Good Postcodes

Search around for grubby areas with good postcodes that are likely to be improved on by a major development taking place adjacent to it, such as Docklands and West Kensington, for example.  

3. Choose a Property with a Lower £ per sq. ft.

Pick a property with a lower £ per sq. ft. than other properties might suggest in the area. This might be buying new build off plan with a two year completion date or an old period property with modernisation potential. If you modernise a property, be sure you know what the market wants by way of finish. A bad finish can devalue a property.  

4. Never Chase a Yield

A low yield suggests better capital values, a high yield suggest poor capital values and your net yield can be wiped out on repairs and maintenance. Property returns should be looked at as a total return (capital HPI and Net Rents combined).

5. Buy the Best Property in Your Chosen Area

Always buy the best property in the best area that you can afford. They are not building enough new homes to keep up with the demand. Residential Property Investment should be viewed as a ten year play. 

 

Most importantly though, do your homework and know the market you want to buy in. If you are looking to invest in West London, see our Investor View and Barometer research that will provide you with some useful market performance data.

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