Have you been considering getting into property investment in Birmingham, but are not absolutely sure if it is for you or what you should look for before you decide to buy?
If so, here are some pointers about property investment in Birmingham that should hopefully help you not only find the right property to purchase, but should also give you a good return on your money as well.
Decide how much you can spend -- Have a fixed budget before you start looking, and do not allow any investment broker to make you waiver on it. Keep it a little bit lower than you think it may cost as well as, like anything, once you get into property investment in Birmingham, there are always additional costs you may not expect.
Will you like managing property? -- Unless you plan on hiring a management firm, which can be very expensive, you will need to be sure you will not have a problem managing the property.
That means, when you rent it out, if the people who rent it have any problems, you will need to go over and fix them, or hire someone who can. This can be frustrating when you have other things to do, so do be sure you do not mind or Property investment Birmingham is definitely not for you.
How to choose the right property -- Look at the cost, the location, the amount of taxes that will be due every year, the age of the building, the size of the building and how many other people live on the property.
Find out about the people who used to live there before as well, as why they moved out, and check on the crime rate in the general area.
Once you have more information like this, you should find it easier making the right decision about the property you would like to buy.
Investing in property can be potentially very lucrative if done well. There are many pitfalls to avoid when investing in property and successfully navigating the minefield is a key to earning a significant profit in property investment. Here are some pitfalls that you should try to avoid.
Not Having Cash Reserves
One of the biggest mistakes when someone is investing in property is to spread themselves too thin. It is important to have some cash reserves set aside in case of an emergency springing up. Otherwise, a broken hot water boiler or emergency roof repair may leave you in need of liquidating your property investment holding. If you are going to rent out your property to a tenant, be aware that the tenant can potentially stiff you a few months of rent and be prepared to cover that shortfall out of your cash reserves.
Not Understanding the Local Real Estate Market
There is a saying that all real estate is local and there is a lot of truth to this. What is true in one real estate market is not true in another and landlords need to be aware of both the local real estate market in terms of the price of the real estate that you are going to buy, as well as the market for renting property that you own. You will need to be aware of who is in the market for renting property in the local area you own property in, such as families or college students, and the money that they have available to support you.
Taking a Short Term Approach
It is important to take a long term approach to Property investment Birmingham. A major reason why people will lose money on property investments is through taking a short term approach to owning property and making a quick buck as opposed to having a long term approach to property investment.