February, the month when love is in the air, but when buying a property this month, 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, froma country cottage to a chic penthouse flat. For some of us it is very easy to fall in love with the property that we’re viewing and at the first viewing, 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 a new home you might base your decision on whether you get a warm feeling when you walk through the door, you might also consider how close the property is to good schools, transport links to your workplace or if you’re working from home, can you create a home office? Your budget will also be a consideration when you think about the price and what a property is worth to you. You may be willing to stretch your budget for a property that ticks (almost) all of your boxes, but you may wish to try and negotiate on the price if you will need to complete work on the propertyto make it your dream home.
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 be different and 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 then larger properties but larger properties command a higher rental value. 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 and command a higher rent. The location of a property.... Good transport links and the level of business/ industry in an area can mean that the area has a higher number of tenants looking to rent. The outside space of a property... Sometimes even the most conscientious of tenants are not always the best at maintaining the outside space. A small or low maintenance garden might be preferred. Off road parking is always a bonus and should help you to achieve a 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.