In 2023, the market for investments can be complex and uncertain. The stock market is currently experiencing high levels of uncertainty due to a range of factors. High levels of inflation and an emerging cost of living crisis are making life difficult for both businesses and consumers. At present, the gold market is proving to be the only “safe option” for investors as it traditionally performs well when there are high levels of uncertainty in conventional markets. However, if you are an investor looking to make significant returns over a longer period, it can be wise to consider the buy-to-let property market. At present, house prices are beginning to fall in many countries, which makes it an excellent time to enter this market. Buying to let has the twofold benefit of giving the investor a continuous revenue stream while also owning a property that is likely to appreciate in the medium or long term. In this article, three key considerations will be discussed when buying a property to let.
Location is critical
Most estate agents recognize that the location of a property is a crucial factor in its potential to increase in value over time. For example, a property that is near busy roads will be a less desirable home (due to the noise and pollution) than one that is in an area of natural beauty. It is also important to understand whether the area surrounding the property is experiencing growth or is in decline. Towns and cities that are not prospering may have a dramatic impact on the value of most homes in the area over time as they will become a less desirable place to live and work. When purchasing a property to let, do your research on the neighborhood, the local amenities close to the home and how popular the town or city it is located near is performing.
Speak to property professionals
If you are new to purchasing property as an investment and a source of revenue, you may not be fully aware of the vast range of factors that can shape your final decision. You will need to set a suitable budget for the purchase of the property and may be expected to put a larger down payment on the home if it is for rental purposes. It is vitally important to speak to property professionals to ensure that you are making the best decisions on the location and type of property you intend to buy. Put simply, property professionals have years of experience in this field, and it is beneficial to read more about how they can help you to make a wise investment decision.
Do not be afraid to haggle
Many people feel slightly uneasy about haggling when it comes to making big purchases. For some people, it can be a difficult process; however, the value of haggling for property is considerable. If you can reduce the price of a property by even 5%, this can represent a saving of thousands of dollars on the final price. Remember that haggling is an accepted part of property deals, and that the buyer will expect to make some form of discount to secure the sale. Research the prices of similar-sized properties in the locality and use this information to help you demonstrate that the property may be slightly above the overall market value for similar homes.