So when you found the right location, what about the best development? Now this is a tough call: you really need a specialist adviser to assist with making that decision. I am sure that a dedicated adviser at CRPI could assist.
In summary there is method in my madness and whilst I respect that the culture of acquiring an investment property off plan at a property exhibition exists, I fear that fingers will continue to get burnt if there is no clear strategy on the investor’s part from the outset. Remember that there are many options out there and acquiring property for investment must be viewed as a medium to long term strategy. You do not have to acquire from plan. Second-hand property is as good, if not a better bet. Like acquiring a brand new car, the moment you drive it off the forecourt you lose money, paying a premium for new build can also apply, as investments do fall, as well as rise, as we all know.
Acquiring a second hand property has many benefits, case history being a major factor from a rental prospective. Many investors exit their position in the market so why not acquire a property with a tenant in situ? No more speculation of whether you may or may not achieve what the “rental guide” price may be. Rest assured that the price achieved in this scenario is always lower! More often than not tenants are served notice to leave a rented property during the sale when they could have remained in occupancy, thus offering the vendor rental until the day of completion and the purchaser secure income.
A common “no, no” is too make an emotive decision when acquiring property for investment. If I was given £1 for every time a prospective investor said “I can’t buy that because I wouldn’t live in it” I would be back on my boat sipping cocktails. Bottom line, Mr Investor, simply is you’re NOT going to live in it; you are making a commercial decision so please leave the emotion at the front door!
Next month I shall be addressing other topical issues such as rental guarantee insurance and appointing agents and furnishing. Should you wish to get in contact please do visit us at www.completerpi.com
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