Tuesday, July 24, 2012

Top Tips to Buying an Investment Property to Improve and Sell for Profit

Property market
Property market (Photo credit: Alan Cleaver)
There are a number of ways to invest in property. You could purchase a buy-to-let in an up-and-coming area, rent it out to cover the mortgage while its value increases and then sell it on for a profit. Alternatively, you could buy a property off-plan and then sell it at its increased market value when it’s completed. Or, if you’re ready for a project and have the time, energy and ability to cope with stress, you could buy a property that needs work but has bags of potential and sell it for a substantial profit. This method of property investment is risky and requires a lot more involvement than simply purchasing a house or apartment but, if planned and executed well, you could be rewarded for your efforts with a hefty return on your investment. Here are our top tips to finding and buying that perfect development property so that you can start making money!


Go to a property auction

Many rundown homes are sold at auction so it’s a great place to snap up that perfect development property. Plus, buying at auction avoids the lengthy property purchase procedures, which can be costly both in terms of time and if it falls through at the last minute. When that hammer falls, the property is yours. To find out when an auction is occurring, speak to a local estate agent or check the property pages of local newspapers.


View a potential property first - and do your research

Whether you’re buying through an agent or at auction, it is essential to view the property first and thoroughly examine it. Consider taking a builder, architect or surveyor with you to figure out just what will need doing, how much it will cost, and how much you could possibly make. Using software such as the Cordell Estimator V5 can help you estimate total project costs. If you decide to bid, research the asking prices of properties on the market in a similar condition so you have an idea how much it’s worth.


Check the legalities

There are certain legalities which could affect the value of the property and what work you’re permitted to carry out. For example, if the building is listed there are a number of constraints on what changes you can make.


Making financial arrangements

If you’re buying at auction, you generally need a 10% deposit to be paid on the day, with a grace period of 28 days to come up with the remaining funds. Whatever you do, don’t buy a property at auction without having secured a mortgage if you need one. If you can’t find the rest of the money not only will you lose the property but you’ll also forfeit the deposit you’ve handed over.


Securing a property

If buying through an agent, the process should be familiar to you. Buying at auction is a different kettle of fish. It can be daunting but just remember not to go over the figure you have in your head from your research or you’ll risk placing yourself in financial difficulties. If you’ve done your homework and keep your nerve, you’ll hopefully emerge with an investment property with plenty of potential!


20 comments:

  1. If you are buying your home through an agent then always be careful about the paper formalities and mainly process should be familiar to you.
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  2. You should always have a lawyer go over any legal document you are signing.

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  3. Thanks for your information. As per my view property investment is a big deal. Before investment we should consider all the factor that influence property like capital growth, location. Nice post shared by you.
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  4. Location is so important and may be the make or break in the resale. Ask yourself what is the first thing you do to gauge the quality of a property. Location. It's how you compare one property to another. When you resell the property, so will your buyer.

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  5. Excellent Share! An exciting dialogue is well worth comment. I think you ought to compose much more on this matter, it may well not be considered a taboo issue but typically individuals usually are not enough to speak on this sort of topics.
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  6. Property is the only investment you can live in.

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  7. Indeed! Great tips! One thing you can do to make buying a house with bad credit much easier is to come up with a down payment. Your mortgage company can usually work with bad credit issues if you can put down some money on your loan.

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  8. When buying or selling a house, it is important to select a realtor who knows the market, has a strong team and will make sure you get the best possible deal. For years, Gilles Rais Fine Homes has helped folks in South Florida discover their dream homes. Their after sales services are great and they assist you with a handyman/contractor if you need to make adjustments to your home or property. Contact them today (954.305.1579) http://www.gillesraisfinehomes.com, let them work for you.

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  9. Wow, Fantastic Blog,I Feel this is one of the most essential information for me. And i am very happy reading your article. But wanna say few general things on your blog , The site style is great, the articles is really very nice and Informative. Good job...
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  10. Valuable tips!!! We suggest that If you are planning to invest your savings in property then hiring a property or real estate agent is the best way to do it efficiently. A decent experienced Property agent always helps you in earnings good profits.
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  11. You can know the top tips fro buying investment property. Useful post

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  12. You have given top tips on buying investment property. The information given by you is excellent. Useful post

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  13. Those tips are very inspiring and very helpful too. Before investing properties we should know a lot of details about what properties we should invest and most especially the legal details. Thanks for sharing those tips and I can use those tips before buying any houses for sale here in Philippines.

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  14. Really nice description you have provided here concerning property investment. Thanks for the description.

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  15. Really worthy tips! The information given in this blog is very important. You should know all aspects before investing in property. I am thankful to the blogger for sharing these important property investment tips.

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  16. Any threat in our business should be kept in control for our Property Investment Portfolio. We have to keep our business healthy for us to be successful in the business. Always do something better that will help for our job and keep everything in rhythm for our business.

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  17. We have lots of goals for our Investment in Real Estate and we need to achieve it step by step. Start from the easiest to achieve and that will help us succeed in the future. We need to ensure that our success by doing the right things for our business and that is what we can achieve through learning.

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  18. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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  19. Know what is necessary for our business to ensure that our business can succeed. Pursue the things that might be effective for our goals in order to succeed. We shall do what is important to keep our business to run smooth.

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  20. It can often pay off to spend on brokers while buying a business. You get someone with all the training, and know the tried and tested processes.

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