The property market goes in cycles but the best time to buy property isn’t necessarily when its on its way up.
It is easy to think that the best time to buy property is when the outlook for the market is looking rosy, but this is not always the case. Astute property investors who are in the game to make a buck will pick windows in the market where they see opportunity. But buying property isn’t always about making money but rather to providing a roof over your head, so if the market is soft and you aren’t sure whether to jump in, answer these following questions to help make your next move.
1. What is the purpose of your investment?
If you are buying property to put a roof over your head you should consider whether buying a property will be cheaper than renting. This way you will be paying off your own property rather than your landlords. On the flip side if property values are low and rents are high then this could be an opportunity to generate a good rental yield even if the property value remains the same. There is always a need for property regardless of the state of play of the market, so consider your strategy in order to work out what works best for you.
2. Can you increase value with improvements?
One way to add value to a property quickly is to make improvements to it. There are many purchasers who do not have the time, energy or want to do any refurbishment works themselves so this is a great way for you to make money. Find a run down property in a well maintained and popular block and the cheaper price tag will give you more money to spend bringing the property up to scratch.
3. Do the numbers stack up?
If the investment is a buy-to-let take time to add up your numbers and check that rent you will collect with cover all your outgoings and any potential void periods. Even if the property is for your own use search the market for the best mortgage in order to maximise your returns and minimise your outgoings.
4. How can I be sure my investment is as safe as houses?
Whether you are buying a property for investment purposes or your own home it is important to consider its saleability in the future. By this we mean how it would quickly it will sell. When the market is buoyant it is easy to sell and move on, but when the market is stagnate it can be tough so it is important that your property stands out from the crowd. If you have the choice pick the best unit in the building, the one with the best layout and outlook rather than the dark unit which looks straight onto the neighbouring building and is located next to the lift so you hear the lift shaft in action. It is important to pick a building that is well managed, is of a good quality and if possible with fewer units to make it more exclusive and reduce your competition. Take time to consider these points in order to make an informed decision on your purchase.
