Winning The Property Game: The Rules To Rely On

Success in any game boils down to understanding the rules and making the right moves. If you’re interested in investing in property or you’re hoping to expand your portfolio, there are certain considerations you should bear in mind before proceeding. Buying property of any kind is a gamble, which may or may not pay off. If you play by the rules and you know exactly what you’re doing, you stand a much better chance of emerging as the victor.

Researching the local market

It’s a cliche these days, but location really is everything when it comes down to making a profitable investment in property. A difference of less than a mile can make all the difference when it comes to valuation and potential, especially in property hotspots like London and New York. Before you make any offers, you should know everything there is to know about the location in which you’re buying. How much have other houses or apartments sold for? How fast is the market moving? What kinds of amenities and facilities are on offer? What are the transport links like? Who lives here and who is desperate to buy in this area? Once you have all the information to hand, this can help you judge whether or not a particular property is likely to make you money.

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Delving deeper into the property details

A sought-after location is an excellent place to start your search, but it’s also essential to choose the right property. Don’t just skim the surface, have a look at the brochure and take a quick tour with an agent. You need to find out as much information about that property as possible. How much work does it need? Are there major jobs involved in renovation work? Are there plans to build new properties or infrastructure in the area? If there is a possibility of new buildings or transport links popping up around you or you’re buying in an area that has been flagged for regeneration, there is a chance that you could lose the property. In some cases, regeneration can be incredibly positive and also lucrative for investors. However, if the property is earmarked for another use or it needs to be flattened to make way for other projects, you’ll need to bear the financial impact in mind. It is possible to claim compulsory purchase compensation, but if you’re on the lookout for a new property for your portfolio, it may be best to steer clear of areas where extensive rebuilding is underway.

Setting your budget

Property is only worth investing in at the right price. This rule applies to any house or flat. If you pay over the odds, the chances of you making a profit are slim. Pay only what the property is worth and don’t exceed your maximum budget. You should go into any negotiation with a budget in mind and try and get the best price possible. Unless properties in the area are selling like hot cakes and there are other buyers in the picture, you shouldn’t have to pay the asking price.

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If you’re playing the property game, bear these golden rules in mind to maximize your chances of success.