Location, Location, Location

Location, Location, Location

You've heard the estate agents mantra 'location, location, location', but how true is it when it comes to making money from property? If you are buying yourself a home to live in for the next few years, then location can be very important, but if you are planning on buying a renovation project, doing it up, selling it on and pocketing a profit, then location can be a secondary consideration.

Property development comes down to money and profit. How much will the property initially cost? How much will it cost to do the work? How much will it sell for? Making sure the sums work out is more important than location. Properties in the less popular locations sell, just as they do in the good locations, the only difference is price. But if you can make a larger profit from buying and selling in a cheaper area, then location shouldn't be the first thing you think of.

Buying something like an ex local authority flat may not at first appeal to you, but they do have an upside. Landlords love them as they are cheap to buy, yet the rental returns on their investment can be impressive. Also worth considering are the first time buyers. As the property market has surged ahead in the last few years, people can find it hard to get on the first rung of the property ladder, and there has been increasing demand for the cheaper properties.

During a property slump, such as the one experienced in the UK during the early 1990's, the bottom end properties tended to have a larger percentage fall than those at the top end of the market. As the market picked up again though, these very same properties provided handsome returns for those who had snapped them up. And they continue to rise in value thanks to the rental returns and buyers being priced out of the rest of the market.

If you are looking for a property to renovate, then consider all properties that are on the market, do the sums and see which one will make you the largest profit. The problem then becomes not picking properties in the right location, but finding enough properties to give you a large enough selection to be able to select the right property at the right price.

Spend your time talking to estate agents. Not just estate agents in your local area, but also estate agents in the neighbouring areas. Get the property details of any property that interests you, then figure out the prices of similar properties in better condition in the same location. Walk down the street, and neighbouring streets finding the For Sale boards, and find out how much similar properties are selling for. This should give you a good idea about prices and whether the property you are interested in has any profit potential.

Spending your time phoning around estate agents and visiting their offices can be a tedious time consuming activity. Nowadays most estate agents list their properties on the internet, so you can do a lot of property searching from the comfort of your own home. There are also websites out there that can do your searching for you, websites that specialise in renovation projects.
 

What Is A Good Property Deal

What is a good property deal?What Is A Good Property Deal. There is an old saying-if you don't know where you're going, any road will get you there. If you are working toward your first property investment, it's better for you to make a good plan, and follow it proactively rather than reactively.

Part of your plan should be to establish basic guidelines concerning properties you'll try to acquire.

1. Identify a price range.
How much cash do you have available to you? How much financing are you likely to obtain? (We'll talk about this topic in greater detail.)  If banks are offering loans at 80 percent of a property's value and you have £50,000 to work with, then £250,000 would represent a reasonable purchase price. You might choose to look at properties with asking prices approaching £300,000.

2. Choose a location.                       
The more of an expert you become in the dynamics of a given area, the more success you are likely to achieve,both in selecting and in managing income properties. In short, the more you know about the territory, the more comfort you'll find in your comfort zone.

3. Select a type of property.
You certainly don't have to purchase the same kind of property everytime, but if this is your first purchase then you should consider how a particular type of property might suit your personality and skills. If you have experience in business, you might feel right at home with commercial property. If you're comfortable dealing with people, perhaps you'll start with a small, multifamily property. If you're good at delegating responsibility and measuring performance, you might do best with a larger apartment building where you use a property manager.

When Is The Best Time To Buy Your First Home?

When is the right time to buy a home?

This is a question that so many people ask time and time again.

You can listen to the media, Mum, Dad or friends down the pub and they'll have a different opinion.

The fact of the matter is that there is no right or wrong answer to this question.

The right time to buy a home is when you are ready to do so. This is different for each person, so you will have to make your own mind up.

But luckily, there are a few things that you can look at if you are thinking about buying a home.

They may not point you in the right direction, but they should at least be able to get you thinking about the decision that you are about to make.

One thing to remember is that it is not the right time to buy a home if you don't think you'll be able to afford it.

No matter what the scheme no depositt, low deposit or a traditional buy you'll need to work out your finances first.

So many people get excited about buying a home that they forget about the costs that are associated with it.

Not only do you have to buy the home itself, but then you have to pay the bills associated with it.

While this is something that you may be able to handle eventually, if you do not have the money now you should not even think about buying a home.

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Additionally, you should only buy a home that you are sure about. Are you wondering what this means?

Generally speaking, since there are so many homes to choose from you may have a tough time making a decision as to which one is right for you. If you want to buy a home you have to take your time when searching for the right one.

Getting so excited that you buy something that does not suit your needs is never a good idea. Instead, you should only buy a home that you are 100 percent sure about.

Remember, this may very well be the largest purchase that you ever make. If you do not take your time you could end up with a large mistake on your hands.

All in all, the right time to buy a home is when you are ready. This is different for each buyer, so make sure that you take your time and listen to what you know best.

Follow these tips and you should buy at the right time.