This is a working document, which means there will be continuous adjustments as and when markets change, until your investment goal has been met.
Included in the planning is Sourcing Strategy.
That are many facets involved when making property investment decisions. Sourcing property involves a great deal more than just picking out a property online, or at an estate agent, and then making an offer.
In every investment there are elements of risk, whether it is commodities, stocks & shares, property investments or running a business. However we work with you to limit the following novice investor mistakes:
- Buying in the wrong area,
- Purchasing the wrong property
- Failing to secure affordable finance
- Letting the property
- High levels of voids
Extensive due diligence begins with:
- Local market analysis
- Proximity to town centre, amenities, schools, universities etc.
- Future market needs
- Viability of location, both short term and long term; e.g. hospital, employers, transport links
- Crunching your numbers etc.
Questions to ask:
- What is the property worth?
- What will it rent for?
- Does it make sense for me?
- Are there any hidden issues?
- What type of tenant would the property attract – students, universal credit recipient or working professional?
- Social breakdown of the area, Local Housing vs Private Owned
- Is there a strong preference for furnished/unfurnished?
- Will it Rent?
- What is available for rent?
- Best- and worst-case market value
- Best- and worst-case rental value
These are the areas in which many would-be investors get stuck or get into trouble because they lack the knowledge in drilling down to the nitty gritty details. Unless that takes place, the due diligence doesn’t take place to analyse the deal before making an offer. It’s vital to become familiar with your parameters for every investment.
Crunching the numbers
Do the numbers stack up? Success is in the detail.
We crunch the numbers for both the Return on Investment and also the Gross Yield, using our Deal Analysis Tool.