If you are building an investment property portfolio it is important to purchase the right properties in order to establish a balanced and rounded collection. That is why you may wish to consider engaging a property finder to assist with creating a new or building on your property portfolio.
In what follows, do please note that we are not offering financial investment advice; the subject under discussion here is property. If you wish to obtain broad-based financial investment advice you should contact a
The attractions of investing in property
Property is a traditionally attractive investment for many people.
How it is progressed may vary depending upon the person concerned. Some may purchase prime properties and use them as their own occasional recreational accommodation whilst anticipating a growth in the value over time.
Others may acquire properties where they believe capital growth is possible but then subsequently decide to keep them effectively unoccupied other than on a “care-and-maintenance” basis.
Perhaps the most popular variation is the people who purchase properties for letting purposes, anticipating both income generation and capital growth over time.
All of those objectives depend though upon the right property being found, in the right location and at the right price.
This is where property finders have an important role to play.
Predicting future property prices
At the heart of a discussion about the property finder’s role is the ability to forecast future value and advise to avoid overpayment on the outset.
Paying too much for a property may significantly and negatively affect your projected ROI (return on investment). Equally, purchasing a property for a currently attractive price may not be a sensible decision if prices in the general area are sluggish or even slip back over the years ahead.
Forecasting the future of property prices is never easy. With experience, it is possible to identify general trends and indicators of what might be likely to happen over the years to come.
However much research you invest on the internet, there is absolutely no substitute for expert local knowledge relating to a given area and property prices within it.
It isn’t always easy to find that expertise other than from an experienced professional property finder.
The raw statistics for the past property prices can be difficult to interpret. Some significant influencing factors may be hard to identify and not in the public domain, for example, planned or potential building work nearby. Estate agents may understandably be inclined to see a very optimistic future given they are trying to sell properties in the area.
These are all areas where you would expect property finders to be able to offer their input to your benefit.
Using property for income generation
There may be issues to consider here in terms of adding properties to your portfolio.
Although the law is not particularly restrictive in terms of the principle of using property for income generation, it does place certain obligations on the property owner (who becomes a landlord). In the case of properties that are larger and which you might intend to sub-divide into multiple occupation units, there are specific laws and regulations that must be adhered to.
Whether these influence your business decision will be a matter for you to decide but it is important that you are clear on what they are and what your obligations would be long before you make a purchasing decision.
In other instances, such as where you are purchasing a listed building, your ability to modify it in order for it to be suitable for letting purposes may be restricted by law.
Similarly, if you are considering purchasing property and using it for commercial purposes, there may be legal issues relating to change of use permission.
These are things property finders would be expected to discover and bring to your attention.
Investing in up and coming areas
Sometimes fundamental changes in the social make up of an area can take place that have a significant impact, positively or negatively, on property prices.
These changes are rarely revolutionary and are more likely to be incremental over time. As someone with a property portfolio, you will be keen to identify up and coming areas and presumably equally keen to avoid those where social changes are leading to potential property price slippage in the foreseeable future.
Such issues may not receive wide publicity and they can be difficult to tease out of local media reporting or even property price survey reports.
Short or long term investment plan
Of course, the likely return on investment of your purchase will be affected by your view of how long you wish to own the property concerned.
Some properties may offer a relatively strong possibility of short to medium term significant capital growth. Others may potentially be a medium to longer-term investment.
This is information you will need to have as an investment aid to identify how well a given property might map into your investment profile.
Investing in UK property
Here at Garrington, we have considerable expertise in all of the above areas.
Why not contact us now for an informal discussion about your planned or existing property portfolio and we might be able to help.