Eric Morecambe once famously said to the world renowned composer Andre Previn ‘I’m playing all the notes, just not necessarily in the right order’.
Interest in purchasing properties for investment in the last couple of weeks seems to have been increasing after hesitancy during the pandemic. However, so many people in the past have said to me that their investment property does not provide enough income or has not made enough capital appreciation or it has been too costly to run or that it does not attract the right type of tenant.
I would suggest that they are playing all the notes, just not necessarily in the right order. So let’s start at the beginning by asking the right questions prior to purchasing an investment. Let’s get the notes in the right order before we start playing.
The questions that people normally ask me prior to buying are:
Is it better to buy in area A or area B?
Is it better to buy freehold or leasehold?
How high is the rental yield? It needs to be above X%
How quickly can I find a tenant?
Should I buy a house or a flat?
How much are your fees as I’m looking for the best (lowest) deal?
When you ask these question they all seem to be the right questions however, like poor Eric, I’m afraid they do not always make the right sounds that make your investment a success.
What you should be asking to create the best sound is:
What type of investment property should I purchase?
Is it best buying on a personal basis or through a limited company?
It is better to use cash or finance to purchase?
What is the right balance between rental yield and capital value?
I’m looking to build a portfolio to leave a legacy to my family, how do I protect this?
I’m looking to build up my retirement fund, how does property work alongside my pension?
I’m looking to buy a property for a family member / friend to live in. Does this make a difference?
How do I meet all of the requirements / responsibilities required of me by law?
Tell me how a partnership with a professional letting agent helps me achieve my goals?
Is what I’m looking to do achievable?
Buying a property is easy however, buying the right property that meets your end goals is harder. Ask the right questions at the beginning, organise your notes and you are more likely to hear the sound of success.
Work with a professional and you will have support in organising these notes and you will be able to project the sound with more volume!
If you want answers to any of these questions please just call me on 01733 592020.
- Tenant demand is rising substantially. For agents in the lettings market, the busy season is approaching.
- Analysis of tenancy start dates based on data from the past 5 years indicates the market starts to accelerate in June, with nearly one third of all tenancies starting between July and the end of September.
- The demand for rental properties increased significantly in the three months to April according to RICS, however new instructions remain low, supporting rental price growth.