Whether you want to buy to rent or simply want to make sure your new house will hold its true value, you have to look out for some attributes in order to be sure whether the property is worth your investment. A key to successful buying is buying the homes that are below the market value, but then, how will you know if it is worth the investment? If you are not an estate agent in Dulwich, it can become very difficult for you to determine the fair market value. However, you do not need to worry because it is still possible. If you are just a beginner in the real estate market, it is wise that you find multiple ways to find the market value.
From original, modern features to the up and coming areas, read to learn how you can find a great investment property in London
Is It An Up-and-Coming Area?
When it comes to areas in a London city or towns, the “up-and-coming” term is an overused one. Especially in trendy pockets of places like London, many areas have tags of this label. When buying properties in such areas, important things to consider are whether the area is improving or recently went through improvements. If the area continues to improve, it is likely that it will still have reasonable pricing and the value may go up of the property. For investors, choosing such areas that have the potential for price growth and a good rental yield is more of a challenge as the prices rise but the rents remain relatively flat. However, this is not a guarantee and it is best that you work with your Fish Need Water estate agents to evaluate your options.
Another example of having a good investment is a property in an area that needs some improvement. When you buy a fixer-upper on a street with prospects of potential growth, it can increase the value in the longer term of the property you wish to invest. You should look out for new restaurants and bars opening, new developments, and ask neighbors around for more information about the area.
According to specialists in property investments, there are some signs you need to look out for when considering whether you should invest or not in a particular area, including:
- Chances of growth for the youth
- Estate agents nearby
- Closeness to basic amenities
Choose a Fine School District
When you invest in a property, you have to consider that most of the prospective renters will be young families and they will care about their children and the school they will send their child to in the area. According to property experts in London, “Choosing school area is a most important key”. “Most renters will willingly pay more if their property is in a good school area.
Survey the Job Market
Usually, when people have jobs, it becomes easier for them to set up their home and live in the new area. Hence, the demand for rentals is higher in areas where the job market has a strong position. As an investor, if you want to be sure whether the investment is worth it or not you should consider its position in the area where accessing jobs is easier and convenient.
Choose Properties That Require Low Maintenance
You might end up getting a tenant who simply loves to mow the lawn and garden and keep your backyard pristine, but you cannot be sure about this! If you leave this responsibility to your tenants to care for the lawn, this task may not be one they accomplish. If your property has a large lawn, you may have to consider paying for the maintenance by yourself or asking a landscape company to attend to it. The first time will be a time consuming one, and the second time will turn out to be expensive. An investment property that comes with a low maintenance landscape is a better choice and a worthwhile investment.
Follow Common Principles
- You should decide your strategy for investment, whether it relies on yield or capital appreciation as this will dictate where you decide to buy.
- If you aren’t familiar with areas in London, you should appoint an estate agent and present your interests to help in finding a suitable property.
- If the property pricing is between your range and it has the number of rooms you were expecting, it would be worth your investment.
- If it is close to local amenities, such as grocery stores, parks, schools, hospital, easy transportation, pharmacies or other areas, it will be an effective choice for you to consider investing there.
Finding a property that is worth the investment is not easy, it is best that you consult estate agents in your area and evaluate it properly before you invest. Consider how well it would increase in terms of ROI in the future and whether the value will increase or drop lower.