How to decide which property to invest in is difficult – many an enthusiast flounders between selling agent, seller, and the clock.
According to some selling agents, West is the new South a for a property, and according to others West, North, East or South could be the place to head when looking to bag a bargain property from a mix of not many bargains. `Next’ is the favoured discussion point, where is everyone heading (or being herded)? Student-land is a current favoured discussion point. Name a University town, any University town, and there’s sure to be resilient property prices, house price growth and a raft of other figures to confuse the matter further.
Using property as an investment vehicle, either as Buy-to-Let or standalone, certainly isn’t a new idea. And of course, these properties arrive in the limelight of yield (the monthly/weekly rent x 12/52 ÷ property value/asking price).
Whilst some talk about Gross yields alongside capital values, those who plan will be looking at Net yields (repairs/maintenance, loan interest, fees, Tax, and voids all subtracted) for an equitable calculation of a property’s ‘value’. Whichever, the maxims ‘know your numbers and be consistent’ is a fair way to pricing an investment property and ‘do your research’ is a fair price for someone to be able to decide if a property is the right one to fill their investment needs and get the full benefit from a property as a business investment.