When you start thinking about buying property in the UK, that will usually mean starting with the city of London's commercial property. Here are important points to keep in mind:
Make sure you are aware of prevailing market conditions.
Choose an agent who primarily works with buyers. Research the agent and make sure he is working in your best interest.
Determine how much you want to spend on a property. Get pre-approved for a loan and structure it for longer terms and a lower down payment.
Check on proximity of the property to support services such as the local fire department or hospital.
Take note of building conditions in the neighbourhood.
Make sure the neighbouring commercial buildings are in good condition as this affects property values.
Decide how much you are willing to pay for the property. During negotiation, offer less than what you are willing to pay.
Engage a real estate attorney to help you close the sale.
When you buy a rental property, you essentially become a landlord. This will mean numerous responsibilities, including keeping your properties safe and adhering to other regulations required by Housing Health and Safety Rating Sytem (HHSRS). But for pure investment purpose, consider these points:
Time the market accurately. Cycles associated with real estate markets have significant effects on your ability to make profit from your rental property investments.
Consider your exit strategy before buying the property even if the property is for long-term appreciation.
Shifting markets provide buying opportunities for real estate investors. This allows the investors to obtain cash flows and sell their properties later when the values of their properties appreciate.
Find good bargains on rental properties by searching probate properties, bank-owned or real estate owned properties, sellers facing divorce or bankruptcy and properties on auction.
Determine your investment strategy. Examples of investment strategies for rental properties include fix and flip, buy and hold as well as lease options.
It may be easier to purchase houses in disreputable neighbourhoods but it will be difficult for you to retain tenants in such properties. Look for rental properties in reputable neighbourhoods.
Short Sale Property
Selling real estate in short sale usually means that the proceeds of the sale will fall short of the debts against the property. It's often used as an alternative to foreclosure. As a potential investor, keep these points in mind when acquiring short sale properties:
Do a comparable sales search before purchasing property on short sale because many properties on short sale come with mortgages higher than the properties themselves.
Determine the number of liens attached to short sale properties.
Locate properties with approved sales prices. Such properties have been through the initial sales process, do not usually come with liens and are priced to sell.
Avoid blatant low-ball offers.
Site last updated: 3. August 2020