Important Questions You Must Ask To Get The Best Deals On Flats
Are flats a good property investment? The answer depends if you are a wise buyer or not.
So how do you know which ones are the good buys and which ones are the bad eggs? The key is in asking the right questions I’m discussing below!
Think of the purchase like a business deal
Most deals for flats are very tempting to take, especially when agents offer you a unit for almost half of the original price. But how do you know if you really are getting a good deal or not?
- How much of your personal money do you need to put into the transaction?
- How much of you money will you get back and how fast?
- How hard it is to do?
When the answers to these questions are all in your favour, then don’t think twice about letting go of that opportunity!
Where’s the best place to buy?
Many property experts believe that location is a big factor in the success of your property investment, but the thing is that you need a lot of money to buy property in the good locations.
Thus, if you don’t have loads of cash on your hand, you must also ask yourself your personal investment goals when finding the right location for your budget.
Ben Babington, the director of residential development, Jackson-Stops & Staff shared to me that properties within the London Underground Zone 1 provide good capital growth, while those found within Zones 2 and 3 offer high rental income opportunities.
He adds that London remains to be the best place to buy flats, because areas outside of London don’t promise positive capital growth and there’s also a big risk that property values will drop in the near future.
What features will I need?
Aside from location, a flat’s features can affect the resale value of the property and also determine your target market. So if you are deciding whether a flat is worth your investment, you may want to know the following:
- Does the house have a garden? – Having a garden can help with the overall saleability of the property
- Is there parking available? – Having a parking space is a very good come on and also helps with the property’s value
- Are you selling to younger people or older people? – Younger buyers looking to start a family will want extra rooms/space, while older folks will prefer flats with lifts so they can avoid having to climb the stairs.
- Are you looking to market to International investors? – Buyers abroad do not like leasehold and will always opt for freehold.
Naturally, your priorities will be based on what you intend to do with the property. If you are looking to deal with foreigners, then you can just move away from leaseholds. If your banking on renting to students, a parking space and a huge floor plan won’t be that much of a priority since students are usually single and take the bus (or ride bicycles).
The important thing is having concrete investment goals (whether it’s for buying and holding, buy-to-let, flipping, etc.) so that you are able to buy a flat based on your needs/target market. Without any concrete plan, you might end up buying for features for the sake of it and end up investing on a property that no one in the neighbourhood wants to rent or buy. Avoid this costly scenario by having specific goals.