They say that hindsight is a wonderful thing and certainly in the property market recently that has never been so true.
Investor landlords that bought last year ahead of the steep rise in house prices locally are enjoying a return of over 6%. Those people repeating the same process now are still getting over 5% on average but it does highlight the importance of getting the timing right and doing your homework before investing.
It can be tempting to ‘just follow the crowd’ but the shrewd investor knows that this is not usually the best option. In our area so many investors have purchased two bedroom apartments that any prospective tenant has a selection to choose from which keeps the rental level capped. After all no one is going to pay more rent than they have to. It is then up to the owners of these properties to try and undercut each other to secure the tenant.
The first thing you should do before buying an investment property is to see how many other similar properties are available as this will show you your competition and what you are up against. If there are very few properties available you are far more likely to achieve a higher rent. You don’t want to end up owning a property that is one of many sitting unoccupied.
There is demand for a wide variety of property types but the market is sensitive so, in short, do a little homework and seek advice from a professional local letting agent. Property remains a great investment for landlords as long as the numbers balance!
Michael Clarke (MARLA), Lettings Director
(01252) 514000 firstname.lastname@example.org