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.