New year, new investment? Now that 2017 has hit, you might be considering a new investment to kick off the year. But what are the red flags you should be looking out for? And what’s the better option? Managing it yourself or handing it over?
1. Can you afford the property?
Investing in property is a big project that – for most buyers – comes with a lengthy process and will take a while to go through. So making sure that you’ve got the funds to cover every singly repayment and put the deposit down is one of the first things you should be certain about.
2. Can you afford the costs?
Costs on a property can stack up. And rules surrounding those costs can change. Whilst some of these costs might be one-offs, like a furniture pack, and other are fixed, like management fees, sometimes unexpected costs can come your way. Especially if you choose to manage a property yourself.
3. How will you manage your tenants?
Securing reliable tenants is an integral part of any investment property in order to make it work as your rental income will cover all the costs we’ve mentioned earlier. Dealing with tenants can, however, be stressful, so it might be worth considering to hire a management agency to take care of your tenants for you.
4. Do you know the rules of the property and the country?
Depending on what country you’re considering to purchase an investment property in and what kind of property it is, rules and regulations may change every time. Therefore, it is important to make sure you ask all the right questions prior to agreeing to anything and do some research into your chosen property.
5. How will you take care of your property?
On a practical level, a landlord needs to be responsive to issues that may arise for tenants. Whilst there are still a fair few landlords in the UK choosing to manage their buy-to-let property themselves, the number of professional landlords is growing. And with more and more investment properties coming to the market fully managed, leaving someone else up to the challenge of taking care of your property might well be worth a consideration.
Overall it’s important to say that investing in property is a big decision, regardless of circumstances. Investing in property in 2017, however, offers you transparency and a great range of options.
For more help to make the right investment decision, also check out our Expert Advice section, featuring helpful investment insights from our team of experts.
