When investing in property, it’s important to remember that you make your money when you BUY a property, not when you sell it.
If you buy at the wrong price, it’s more or less impossible to rectify that going forwards unless a rising property market saves you.
If you buy sensibly, you can also expect to sell sensibly if you ever need to. Try to avoid:
• Simply overpriced. Once you’ve established you can buy a nice 2 bed property in a given area for £X, don’t pay £X + £5,000 for one because you’re impatient. If you overpay at the point of purchase, you’re playing “catch up” regarding the value of the property from day 1....So DON’T overpay!
• Needs work, and this isn’t reflected in the price. DON’T be put off by properties that need work, as these are often the best buys. But DO ensure this is reflected in the price. If it’s £X for a nice one, its £X minus £5,000 for one that needs a kitchen and bathroom.
• Unrealistic rental price. If you’re buying in an area where flats rent for £450 per month, don’t expect yours to rent for £550 per month on the basis that it’s just been painted – expect it to rent for £395 per month if you don’t paint it!
• Lacking key features. If you’re buying in the suburbs to attract the family market, don’t buy the one house on the street that has no garden, or no parking. Families want gardens!