If you’re looking to grow your money, you may be hoping to find a means that doesn’t carry a huge amount of risk.
We all know that you have to speculate to accumulate to reap the rewards sometimes, but what if you can’t afford for things to go wrong?
The trouble is that there are no safe bets when it comes to investing your money, but some options are less treacherous than others. If you’re thinking of buying an investment property, here are some tips to help you maximize your chances of financial gain.
Understanding What Buyers Want
When you buy a property for investment purposes, you’re not searching for a home you absolutely adore. You’re looking for a house or an apartment that somebody else will fall head over heels in love with.
Think of yourself as a salesperson offering your clients exactly what they want. Firstly, figure out which market you want to target. Are you aiming at young professionals, seniors, new graduates, students or families?
Once you’ve made a decision, you can tailor your property search accordingly. Think about what that buyer wants and what kinds of features and characteristics will make them want your property over others.
If you’re catering for the family market, look out for spacious properties that are close to schools with excellent reputations. If you’re targeting young professionals, proximity to transport links is always a bonus.
Getting the Numbers Right
Success in property investment boils down to getting the numbers right. You have to make sure you buy and sell at a price that gives you the profit you want.
If the price is too high or you spend too much renovating a house, this will impact your margins when you come to sell. Look for cheap houses for investment if you want a quick turnaround, and you’re not interested in the luxury market.
Plan every step of the development and ensure you know exactly how much you’re going to spend once you’ve added the purchase price to the renovation cost. Make sure you have these figures to hand before you sign any contracts.
You’ll also need to get an idea of the kind of valuation you can expect once the work is done to determine if this is a viable project. Get some plans drawn up, get some building quotes and ask some agents to take a look at them and give you some valuation estimates.
When it comes to putting in offers, work on your negotiation skills and don’t panic if the first figure you put forward is rejected. You can put yourself in a better position by offering cash or ensuring that you’re ready to act immediately if the offer is accepted.
Most of us have a desire to earn more money. If you’re thinking of investing in property, make sure you do your homework before you submit any offers or sign any contracts.
Research the local area, learn more about your ideal buyer and set a budget. Always remember that this is not a search to find the home of your dreams. It’s about finding the right property at a price that will enable you to turn over a profit.
So are you considering the idea of developing a property? If so what is and isn’t holding you back? I would love to hear your thoughts on this in the comments below.