Although the Scottish independence referendum stirred up the bricks and mortar market for the length of its duration, now that it is over, it’s fair to say that the housing market across the UK will return to its normal, (relatively) stable self. Of course, there’s always bound to be a little bit of volatility in the housing market, but if you compare the property market to others that you can invest in, like stocks and shares or FOREX, it’s a much safer way to make money.
With the Bank of England’s Mark Carney recently announcing a range of measures to make the property market more stable, now could be an excellent time to buy a property to sell on. If you’re unsure of how to go about this process, don’t worry; we’ve created this short three-step guide to help you.
Following the Demand Is Vital
The first step of investing in property of any kind is discovering where the best markets are; you’re looking for areas with high demand and quick property sales. Of course, the place where properties are selling the most quickly at the moment is London, but if you’ve been keeping up with the news, you’ll know that prices are increasing rapidly too. For example, property prices in Brixton have increased over 30 percent in this last year alone due to a large number of professionals moving into the area. Therefore, the real skill of buying a property is actually in knowing how to balance the property’s price with its desirability.
Choosing Between Flat or House
You might have noticed that all the way through this article we haven’t really referred to buying a ‘house’; instead, referred to property. That’s because it’s up to you to decide whether you can afford to buy a house or a flat to sell on. Remember, you need to take into consideration more than the initial cost of the property, you also need to think about how much money you’ll spend doing it up; this is obviously going to cost more for a house than it will a flat.
Maximising Your Profit
Finally, you need to think of how to really maximise your profit when you come to selling. This is crucial, and it makes the timing of the sale extremely important. For example, if you have a house on sale for 6 months, it’s wasting your money and you might be better selling through less conventional means like a house buyer.
Ultimately, if you follow the advice above, you’ll hopefully master the art of buying a house to sell.