Four key points property investors need to check

Four key points property investors need to check


Todays other news
Mortgage costs decrease despite Bank of England rate freeze...
UAE developer opens UK office to woo property investors...
Are slow transaction times killing property investment?...
Tradesperson labour costs soaring - high inflation in many sectors...
Here’s where the market is hottest in terms of quick...


Covid-19 hasn’t changed the fundamentals of property investment (or any other form of investment). It has, however, changed some of the details. With that in mind, here’s a quick guide to what property investors should be checking in 2021 (and beyond)?

Can a property be sold to residential buyers?

Whenever you buy an investment, you need to formulate an exit strategy. This is particularly important for property, due to the lengthy, complex and expensive selling process. Post-Covid-19, it’s probably safest to look for property which could feasibly be sold on to either residential buyers or investors.

In simple terms, this means that you need to look for properties which would be acceptable to mortgage lenders. For example, you’d want them to have a decent length of time on their lease. If you’re looking for bargains in the ‘cash-only’ market, then make sure that you can address the issue which made the property ‘cash-only’.

Is the property in a good area?

Post-Covid-19, the idea of “a good area” has changed somewhat. From an investor’s perspective, you’re still looking for areas which can deliver good yields. You may also be particularly interested in areas which offer the potential of capital appreciation.

You still need to look at general renter-friendly (and residential-buyer-friendly) features such as local facilities and amenities. Properties with access to green spaces have long been appreciated and are currently in especially high demand.

Access to transport links may, however, be more of a negotiable point than it used to be. If people are either working from home or “hybrid working”, they can be more relaxed about veering out of the main commuter belt areas. You might not want to go too far off the beaten track but you can certainly explore its outer limits.

Is the property suitable for home working?

You don’t need to rule out studios and one-beds, but you do need to keep in mind that renters (and residential buyers) are increasingly likely to want home-working space. In simple terms, if a property is big enough to have a dining area, even a pop-up one (like a folding table), then it can be used for home working.

Ideally, you want properties in areas with robust internet infrastructure. You might also want to consider putting in ethernet cabling as some work-from-home jobs insist that staff use wired connections.

Is the property energy efficient?

Energy efficiency has been a growing issue for some time now and minimum standards have been enshrined in law. The issue has, however, been given a push forward by Covid-19. In simple terms, if you’re working from home, you’re using your own heating and lighting. This means that energy-efficiency takes on a whole new level of importance.

Modern buyers are also likely to appreciate good sound insulation. This is often linked to energy efficiency. Basically, anything which adds insulation will generally help to block sound. This includes carpeting, so you might want to consider replacing hardwood floors with carpeted ones. If so, you’ll need to factor in the cost of this.

*Mark Burns is the managing director of property investment firm Pure Investor

Share this article ...

Join the conversation: Login and have your say

Subscribe to comments
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
Brent Cross Town is a 180-acre new park town development...
Manchester is the highest-ranking English city for residential investment, according...
The demand for retirement housing is on the rise, creating...
Property consultancy Carter Jonas has conducted a substantial new analysis...
The financial success of your buy-to-let depends on the investment...
The new Labour government has finished the job started by...
Manchester is the highest-ranking English city for residential investment, according...
Recommended for you
Latest Features
Mortgage costs decrease despite Bank of England rate freeze...
UAE developer opens UK office to woo property investors...
Are slow transaction times killing property investment?...
Sponsored Content
In the ever-evolving landscape of property investment, staying ahead of...
Property investors, This one's for you. Lendlord's latest Deal Analyser...
The savvy property investor knows the importance of adapting their...
0
Would love your thoughts, please comment.x
()
x

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here