As a seasoned renter witnessing your hard earned cash lining the pockets of your landlord, you want to break free and see your money working for you. You no longer want to be moving homes every twelve months, and you want to put down roots. You’re keen to get a foot on the property ladder, but you’re nervous. This is the largest financial investment you will ever make in your life, and you don’t want to make a costly mistake. You consider yourself pretty financially astute, and you don’t want to lose money on your investment. In fact, you want to outperform the market and view your first property purchase as launching you a few rungs further up the housing ladder. Can it be done? Take a look at this guide to outperforming the market as a first-time buyer.
Choose Your Location Wisely
If you’re keen to see a more lucrative return on your foray into the world of property, you may need to take more risks. You could purchase your new humble abode in an area that is already established as an excellent neighbourhood. By doing this, you are guaranteed a return on your investment but maybe not in the realms of profit that you had foreseen. If you do your research and try to spot the next up and coming area, you can pick up a house for a minimal price before the regeneration of the area has taken place. If you have made a wise decision and you notice more property development in your chosen area along with an emergence of a cafe culture, greater amenities and transport links, you know that you are onto a winner.
Making a lucrative return involves getting your hands dirty. It pays to try and purchase the worst house on the best street. This way, you have more opportunity to add value to a property knowing the ceiling price of the road or vicinity and sticking to a budget accordingly.
Purchasing a fixer upper can be exciting and offer you the opportunity to design a living space bespoke to you. You will need to consider how you are going to pay for the property and the subsequent renovations. It’s wise to look into traditional bank financing options. By securing a loan at a favourable interest rate at a budget you can easily afford, you will be at less risk of becoming unable to afford the monthly repayments should interest rates spike. You can investigate home loans as well as specific renovation and refurbishment loans to suit your circumstances.
Short Or Long Term
Be aware that your plans may change. If you purchase a property with a short term investment in mind as you were going to fix up a small house and put it back onto the market to make a lucrative profit, you may need to alter those plans if the property market doesn’t remain as buoyant as you would like. Don’t sell for a minimal profit if the market forecasts are showing a sharp increase in house prices over the next twelve months. Be patient, enjoy living in your new renovated pad for a little while longer, and exit the investment a year later with optimum profit.
Getting your feet onto the housing ladder has never been tougher, and outperforming the market is becoming even harder. By following this advice, you have every chance of success when investing in property.