Property is one of the hottest investments at the moment and so many people are jumping on the bandwagon. It’s a good way to make a lot of money in rent and secure an investment that is likely to appreciate in value a lot. However, it’s not as simple as people might think. If you don’t get the right property, you’re really going to struggle to rent it out. A lot of new properties have been built recently in response to a housing shortage which is never a bad thing, however, the speed at which they’ve been put up is causing problems. There have been a lot of reports of new build houses with severe problems caused by shoddy workmanship. Naturally, there could be issues with any older property that you buy as well so when you’re looking for investments, you always need to keep your eye out.
Before you’ve had the chance to get a surveyor out, you need to look out for some of the warning signs yourself. If you see any of these things, don’t buy the property.
Flood Zones
Most landlords don’t consider flooding when they’re buying a house but tenants are going to be wary of buying a place that is in an area that floods regularly. Once you’ve signed that contract, there’s no going back and you’ll be stuck with a property that you can’t rent out. Always ask the real estate agent whether the house is in a flood zone or not. They might not always be completely honest so it’s worth checking yourself. If you put the postcode into this site, it will give you a flood map of the area and you can see how at risk you are.
Zoning Restrictions
One of the key things to consider when you’re looking at homes for sale is the potential it has. What changes can you make to the place after you buy it that are going to increase the rent? Check the local zoning laws, otherwise, you might try to add some extra bedrooms only to find that you can’t get the permission for any extensions. If there are strict zoning laws in the area then it’s definitely worth thinking twice about buying in that area.
Outdated Technology
When people are looking for a house to move into, they’ll consider the technology that’s in there. Old boilers and thermostats, power outlets or security cameras are all things that people might look out for. Having USB slots in the power outlets is only a small detail but it’s often a big bonus for tenants. In older houses, you’re not going to get as much of that new tech but buying from somebody that has updated things a bit is a good idea, otherwise, you’ll be paying for all of that stuff yourself.
A lot of people get into real estate investment because they think that it’s as simple as buying a place and putting up an advert. It would be great if it were that easy but if you don’t watch out for these warning signs, you could end up wasting a lot of money.
