Posts Tagged ‘property investors’

So far in our series on finding potential property hotspots we’ve explored the benefits of examining new transport links and areas undergoing regeneration. Another useful way for property investors to find property hotspots is to turn their attention to university towns and cities.

Where there are large universities, there will always be undergraduate and postgraduate students, plus lecturers, in need of accommodation. Although many universities offer good on-campus accommodation, there is rarely enough to cater for all students and some people will always prefer to live off campus anyway.

In some areas, there may already be an overload of student rental properties, but one way of finding an area that may become even more of a hotspot is to look out of universities that are expanding, offering new courses or are experiencing an influx of student applications. 

Is student property in demand?

One issue that is always worth exploring, whatever property you are looking to buy, is what the market for tenants is like. After all, there is no point buying a property with a view to letting, only to discover that you can’t get any tenants. When it comes to buying in university towns and cities, this issue comes into its own as, as long as you’re buying the right type of property and in a popular rental area, you could end up with a stream of tenants on a long-term basis.

What’s more, there are several possibilities for landlords buying in university towns and cities, as properties can rented as HMOs for several students, small studios or flats for one or two students, or properties aimed at post-grad students or lecturers.

University towns and cities aren’t just locations where you’ll find plenty of students needing accommodation though – often there are lecturers and older post-grad students studying in the area who need rental properties too. Whilst younger students may be happy to live in the heart of student land, lecturers are unlikely to want to, so choosing a property away from the typical student zone can be a wise move.

Likewise, some graduates may want to stay within close proximity of where they’ve studied once they’ve graduated and got a job, so you could hone in on this market too.

Whatever your plan of action, it’s important to research the market in university towns and cities carefully, so that you can identify the areas where students and lecturers like to live and the types of properties that are favourable. Once you’ve purchased a property, advertising and marketing your property in appropriate ways will help, especially if you can get listed on the recommended university rental accommodation lists.

Finding Property Hotspots Part 1 – Transport Links

Finding Property Hotspots Part 2 – Regeneration Schemes

As our previous post discussed, the Google Earth satellite mapping tool can offer huge benefits to property investors, as it lets you get another perspective on particular properties and areas.

Here are some more practical ways in which you can use Google Earth to help your property investing process and decision making.

Google Earth can be used to assess the area demographics

As Google Earth lets you zoom in on a specific area, it’s really useful to look at the other types of property close by and get an idea of what the demographics area.

There’s no point in you investing in a property and aiming at it the student tenant market, only to discover that it’s actually primarily an area where families or elderly people live. The types of properties available can give you an idea of what the likely demographic is and help your property investing research.

Google Earth can help identify property problems

Looking at a property on Google Earth can sometimes help you spot potential problems too and identify the good investments from the bad.

For example, if there’s a new development very close to the property, if it’s right next to a main railway line with noisy high speed trains or if there’s no parking available near the property, then these could be warning signs. These are all issues that could affect the rental potential of your property and it’s best to know about them before you part with your cash.

Google Earth can help highlight geographical issues

By using Google Earth, and also Google Maps, you can highlight any potential geographical issues that could pose problems.

For example, if the property is located near a river, then it could be at risk of flooding, or if it’s located near old mines, then could potentially be the danger of mine shafts.

These are just a few of the ways in which you can use Google Earth to aid your property investing. It’s a valuable tool, so if you’ve not explored it, it’s definitely worth having a look.

The Google Earth satellite mapping system might not, at first mention, seem all that relevant to property investors. However, it’s an invaluable tool to have and there are many benefits to be gained by property investors who take the time to explore its potential.

The Google Earth system lets you view satellite images, maps, buildings and terrain anywhere in the world. This means that you can hone in on a certain area, such as a town, street or even a house that you’re interested in and get to view it up close online.

For property investors, Google Earth is a really useful tool to be able to use, as it means you can suss out properties you’re interested in purchasing, see neighbouring homes and explore what the local area has to offer.

It doesn’t necessarily mean you don’t need do these things in person too, but it does give a very useful alternative perspective on things, as you can see the size of a house from above and in 3D.

There are a lot of ways in which you can use Google Earth to your advantage when you’re thinking about investing in property. Here are two of them.

Google Earth can help you look at a specific property

Google Earth is great for honing in and getting a much closer look at a specific property. Although you may well have already got property specs, the 3D imaging allows you to see the property from another perspective.

You should be able to see the property, any extensions that have been built on the property, the size of the garden and access points, plus look at in relation to neighbouring properties. For example, if you know the prices of other properties in the same road, you can compare visuals of their size, access, garden etc. 

Google Earth can help you study the area

It’s always important to look at the property location and look at what the area has to offer, and you can get a reasonable idea using Google Earth.

For example, you should be able to see what shops, schools, supermarkets, pubs, leisure facilities or railways are in the location and how near or far they are from the property you’re interested in.

Or you can see what large businesses are in the area, such as factories or major employers, that may need properties to house workers, or organisations where key workers would be based, like large hospitals.

First-time and would-be property investors may think the property investment world is easy to break, but all too often they don’t do their homework and make silly mistakes.

Here are five of the common mistakes made by first-time property investors.

1. Not choosing the right location 

Getting the location right for your property is crucial if you’re going to rent it out.

But new investors often assume they should buy property in an area they know, or get distracted by the look of a particular property.

However, there’s no point in owning a lovely property in an area where no-one wants to rent it, so you should abandon any pre-conceived ideas about where you should buy, and look to the market to find areas where people want to rent.

2. Not treating property investing as a business

If you’re going to succeed as a property investor, then you need to treat it as a business from the start.

Your key focus should always be on which property investments will give you the best capital growth and rental yields, and won’t cost you an arm and a leg in the first place.

3. Getting too emotionally involved in the property

If you’re going to make a go of it as a serious property investor, then you need to leave your emotions about a property behind.

It’s not going to be a house that you’ll live in, so there’s no point in getting carried away with interior decorating ideas or wanting to stamp too much of your personality on the property. You’re buying it to rent out, so it’s best to stick to neutral interiors and colours that will appeal to everyone, not just you.

4. Not using a property management company

Many first-time investors look at property management options and see it as an expense which they could save on.

However, it’s usually only a small fee, it’s tax deductible and you gain the huge benefit of having experts to handle tenant problems. With the best will in the world, not all rentals run smoothly all the time and it offers great peace of mind to have a company handling the rental business side for you.

Not only will they be experienced at dealing with tenant problems, but they’ll also have a maintenance team ready to handle leaks, repairs and unexpected problems.

5. Buying an expensive property

Would-be property investors may think that buying an expensive property automatically means they can charge higher rent and make more money.

Although high end rentals can work well when the economy is buoyant, it certainly doesn’t mean that you can make more money. You may well have to work harder to find the right tenants and they’re not a good option during an economic downturn.

In the long run, it’s better to invest in an average property, where they’ll be far more potential tenants, than splash your cash on a high end investment.