Often people fail to make a profit from property investment when they do not understand the true market value of their chosen property, both in terms of resale and rental income.
Investors hoping to purchase a run-down home or off-plan development and sell it on at profit when the work is complete; a practice known as flipping, are often caught out by over-inflated prices or under-estimated renovation costs.
On the other hand, buy-to-let investors can be seduced by suggestions of high rental values and then disappointed when these do not materialise.
Whether you’re planning to flip a property or buying-to-let, it is important to ensure that you do not pay over the odds, as money saved on the purchase price will lower your mortgage costs and increase your profit margin.
Understanding the local market
One of the best ways to estimate the potential value of a property is to understand the local market. Fortunately there are a number of tools to help you do this:
Use the internet – The Land Registry (landregisteronline.gov.uk) now provide information on all properties sold in England and Wales since 2000. Through...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
