Heart or Head?
This is the month that LOVE is traditionally in the air, but if you are thinking of buying a property, should you be ruled by your HEART or your HEAD?
We all have our own aspirations with regard to the property that we’re looking to purchase, but our individual visions of loveliness differ widely, from a country cottage with roses around the door to the chic penthouse flat. For some of us it is very easy to fall in love with the property that we’re viewing. At the first look, many investors place the same ideals and emotions onto an investment property that they do when looking to buy a property to live in.
When buying your own home you might base your opinion on whether you get a warm feeling when you walk through the door, you might also consider how closely the property is located to good schools. You might think about the price with regard to your budget but without really taking into account the re-sale value of the property in the future. You really do want to fall in love with your future home.
When buying an investment property however, your list of requirements for that property may differ and be based much more on financial and practical issues. Here are a few things that you might want to consider.
The size of the property. 2 bedroom properties as a general rule let faster than larger properties.
The type of property. Terraced houses are traditional rental properties, but a semi-detached property is likely to have a better re-sale value in the future.
The location of a property. Transport links and the level of business/industry in an area can mean that that area has a higher level of tenants looking to rent.
The outside space of a property. Sometimes even the most conscientious of tenants are not always best at maintaining the outside space. A small or low maintenance garden might be preferred. Off road parking is always a bonus and can help you to charge a slightly higher rent.
The primary aim of any investor is generally to make money. It is important however not to lose sight of your goal and objectives when buying a property, so always remember to put away those rose-coloured spectacles and look at your prospective investment property through the lens of the impartial investor.