Get the right location
Before you decide which property to purchase, do plenty of research into the area you are thinking of buying in. Consider who will be purchasing the home – if it is a family home you’ll need to check that it’s near a good school, has a low crime rate, and offers family-friendly amenities nearby, such as parks and leisure centres. If your target market is likely to be young professionals the school district becomes less important, but you’ll need to consider transportation links and local amenities such as shops, bars, and restaurants. An area where properties are selling quickly is ideal – keep an eye on sites such as Rightmove and Zoopla to get an idea of the most popular areas or have a chat with us here at Lillicrap Chilcott. Our agents all know the most sought-after postcodes in Cornwall.
Get the right type of property
As an investor you’ll want to make a profit fast and move on to the next project, so your ideal property is one that will appeal to as many potential buyers as possible. Look for homes that could fit both first and second-time buyers – three bedroom semi-detached properties are a good place to start. Avoid homes that need costly renovation work (for example, a new roof or complete rewiring) – they will take a long time to update and the cost of major renovations will eat into any potential profits. Double check the local planning website to make sure that any existing improvements have been granted planning permission and anything you intend to do when you flip the property hasn’t been tried before and rejected.
Get the right situation
Don’t waste your time on sellers who aren’t serious about moving – as an investor you need to find properties where the vendors are in a hurry to sell and aren’t in a financial or personal position to hold out for the best price. Properties that come onto the market after the owner has died are also promising if the beneficiaries are keen to sell as soon as possible. Make sure you work out all your costs carefully before putting in an offer; your return on investment (ROI) will be the cost of sale minus the purchase price and all your refurbishment costs. Don’t forget to factor in stamp duty plus the utility bills and council tax bills you’ll have to pay if the home doesn’t resell as quickly as you were hoping. If you can’t get a property for your desired price, walk away and look for another one – there are plenty of good investment opportunities out there.
Whether you’re looking for an investment property or a permanent home, the friendly team at Lillicrap Chilcott can help you throughout the entire home buying process. Contact us today for more information.