Property Buying & Sales
Tips for buying, selling and adding value to properties
Buying and selling property can be fairly complex and hard to navigate for beginners. If you’re looking to get on the property ladder or to make an investment, it’s a great idea to brush up on the best ways to approach property buying and property sales. Below the MentorME team have put together some great tips for buying, selling and gaining value from property in the UK.
With any investment, the ideal scenario is to buy low and sell high. With investing in property, it’s important to look thoroughly at which opportunities could give you the most profitable outcome.
Cheaper than the rest:
A good starting point is to look for properties that are on the cheaper side compared to the other surrounding houses. This could indicate that this particular property just needs some cosmetic work, and can be sold at a higher price once work is complete.
But you should avoid properties that have large amounts of damage or required works that may become complicated further down the line. Before any property is bought, a professional inspector can evaluate the potential risks that would come with buying a particular property.
High potential areas:
When a town or village has plans for improvements or new developments, they are going to be seen as more attractive to potential buyers once those improvements have been completed. This could drive the average house price up. If you’re looking to invest in a property, why not think about buying one in an area that could soon be a thriving environment for families?
If you find a property in this situation, with minimal work or renovations required, the only factor to keep in mind when looking to buy and sell, is timing. This could be a great strategy for first time buyers, as once your property has increased in value and is sold, you can use your profits for a deposit on your next investment.
Getting value from a property
Simply buying and selling property once house prices have increased isn’t always the best way to make profit. Adding value to a house can ensure that whether you want to sell quickly or further down the line, your home will gain and hold value.
Here are a few renovation projects that can increase how much your property is valued at:
- Extension (15% potential value increase)
- Loft Conversion (20% potential value increase)
- Solar Panels (4% to 14% potential value increase)
- Driveways (5% to 10% potential value increase)
- Double Glazing Windows (10% potential value increase)
Renovations can be a difficult task if not planned correctly. If you are considering increasing your property’s value with any of the works above, make sure to use respected and well-reviewed tradesmen and experts.
Renting out your property
Letting out your property to tenants can be a great way to pay off your mortgage. And with enough properties, you could make a living.
Things to consider when renting out your property:
- Make sure any tenants have a great track record with previously rented properties.
- Your property should be safe to live in. Make sure the electrics, gas and water are all checked before letting.
- Maintain your property regularly. If your tenants let you know of any problems or issues with the condition of your property, make sure to fix them before those problems get worse.
- Take out an insurance policy in order to cover any damage or loss of personal items within your rental property.
- Make sure all bills or costs for maintenance are covered before you take any profit or make overpayments on your property’s mortgage.
If done right, renting out properties can be a great investment. Even if you can’t afford to take profits from renting, the mortgage for that property will be paid each month and isn’t going to waste. If you do get to a point where you can take profits, you may consider investing more rental properties.
Selling a Property
If you want to sell your property or home, there are a few things you should keep in mind.
An estate agent is an entity that can advertise your for-sale property and give potential buyers a tour of your home. To make things easier, pick an estate agency that is close to your property and has great experience in selling properties of your type. This will increase your chances of getting offers that are close to the sale price you’re looking for.
Your estate agent will have your property valued and discuss with you what the best asking price would be. It’s important to not under or over sell your home, as you don’t want to miss out on potential profits or discourage potential buyers.
What will you do after your property is sold? It’s best to put a plan together on what you will do with the money you gain from your property. If you’re looking to invest in again, consider what lessons you’ve learned from previous investments. With the right experience you will know what to look for, and be able to spot great opportunities.
Do you want to learn more about how you can invest in property? Get advice from our property investment experts today!