What to Look Out for When Buying Your First Property

The property market can be a daunting and confusing, prospect. There are so many variables to consider that it can be difficult to know where to start. Some people may buy investment properties to rent out will sometimes put their trust in property management companies and just expect the money to roll in. If you want to get an understanding of what to look for when you buy to rent, it’s wise to gain an understanding of the component parts that can make a property profitable.

The Area your Looking to Buy In

A great start to buying a property is having some idea of what area you would like to buy a property in. Its important to look at some of the key features of the area when deciding how profitable the property may be. Studies have shown that the best areas to get a property in are those areas that have the largest possible return of investment. Aesthetically pleasing areas, with outstanding beauty can fetch a better deal more than an inner city, given the right circumstances. It is also important to take into consideration of any issues that a sea-view for instance may bring in times of bad weather, or the cost of maintenance if a property flood. It can be a profitable investment if you choose a location that is within a range of good transport links, especially if job prospects aren’t great.

Local Governance

It is crucial to look at how the local government conducts itself. If you find an investment property that is relatively inexpensive and you plan to rent to young professionals, you should be forewarned on the property tax, as that may well eat into your profits. Local Governance can sometimes dictate the market value of your home or property. Future developments in the area may allow a growth in the long run but disruptive works can cause average house prices to fluctuate in the short term. It’s a good idea to think like a prospective renter when looking at your property, and the first thing that a prospective renter will look at is the local market. Some local governments will legislate the property market in order to ensure fair prices. It is beneficial to get a good idea of the local average rent in combination with the local taxes is advisable.

Community

Something you may need to do some extensive research on is the community within which the investment property sits in. A community is usually seen as the life and soul of an area. You will need to get out and about, perhaps spend an amount of time in a give area. It might be worth taking a notebook as you observe and weigh out the pros and cons of what you see. It’s a good idea to take note of amenities such as theatres and museums, cinemas and events venues or anything else that might provide entertainment to the local populace. Amenities such as these can be great hubs for understanding the cultural make-up of an area, so it’s a good idea to check them out for yourself. After taking amenities into account, you may spend some time chatting with people who live in the community. By talking to potential neighbours, you will get a clear and honest picture of virtues and limitations of the neighbourhood.

The Property Itself

It goes without saying that the main consideration is the property you are looking to purchase. It is advisable to have a property surveyor take a look at the property and offer an unbiased opinion. Push the seller for as many details as possible, including the age of the property, energy efficiency and any maintenance issues its had in the past.