A good property investment in Swansea is one which completes on its objective – meaning, if you are buying a property to fund your retirement, then your investment has to be generating enough income to do that. Alternatively, if you are investing now to benefit from capital growth/appreciation later, you need to know what areas are best to invest in to maximise on that opportunity.
Everyone has a slightly different requirement from their property investment, so understanding what your requirements are will be essential to your success.
Whilst researching into the success stories of others is a good motivator, property investment is not a one-plan-fits-all, so exercise caution when going to ‘buy property without a deposit/grow a property empire in 1 year’ property seminars.
Getting the right property takes time and effort. Hopefully these ten tips will help you on your journey:
- Be focused in your property search. Knowing what you want will make it easier to work out what to look for. Make a list of reasons why you want to invest (keep it simple!) and keep it in mind when you actively start looking for property.
- Know your numbers. How much do you have to spend, what is your budget? Start by working out what the yield would be before even thinking about booking a viewing.
- Stay objective. Don’t get attached – this is not going to be your home! Having said that, it will be somebody’s home, and it must appeal to the widest possible market. Don’t buy a hole just because the figures work out well.
- Who will your tenants be? What type of tenants are you looking for, and what sort of property might they want to live in?
- Location, location, darling! Even the right property in the wrong location will never let for as much as you hope it will. Think back to where your ideal tenant will want to live, and start looking there.
- Keep your letting agent in the loop. Market trends do change, and your letting agent will be able to offer information and advice on what’s popular with various demographics. For example, 1 bedroom flats were super popular in 2005, but 10 years on, professionals are looking to save money by sharing 2 bedroom properties with their peers instead.
- Don’t be afraid to negotiate! A low purchase price will help increase your yield. Focus your search on distressed and motivated sellers (repossessions, part-exchange, probate).
- Consider potential renovation costs. Are you looking to refurbish completely, or does the property just need a lick of paint? A well-presented property is likely to attract tenants who will keep it well-maintained.
- Get the design right. If you are re-modelling, ensure you are making the property better! Kitchen and bathroom layouts are essential to get right – get them wrong, and they will put everyone off.
- Get some great mortgage and tax advice. Get an independent mortgage advisor that really listens to what your long term goals are so they can advise on the best possible products on the market for you. Similarly a good accountant should be planning your future tax liabilities and advising you rather than just giving you a bill at the end of the year. Both will save you time, stress and most importantly money, which means more profit for your investment.
And an addition tip – our cousins in Estate Agency are great at what they do, but don’t take their advice about how good a property will be to rent – after all they are trying to sell you the property.
If you are looking to invest in Swansea and would like some free advice about the best areas to suit your investment requirements, just pick up the phone and give the McCartan Lettings team a call on 01792 430100.
If you found these tips useful, and would interested in similar guides, as well as news and information on the property market in Swansea, you can sign up to my free monthly newsletter by clicking here.