Looking for a property for sale in Cheltenham? Here is what to look for when investing in family homes
If you’re thinking about investing in a family home, it is always better to invest in a single-family home instead of multi-family residential dwellings. Simply put, single-family homes are detached homes that sit on their lands, while multi-family properties are apartments and residential buildings. However, before you start looking for potential homes for you and your family to live in, or for investment purposes, you need to do your due research. One of the most common mistakes that potential buyers and first time investors make is that they do not hire a real estate agent to help them find the right property. So, if you’re looking for a property for sale in Cheltenham, make sure that you get in touch with estate agents in Cheltenham! Here are some of the most important things that you need to look out for when investing in family homes for those of you who are looking to buy a new property.
Shop for the right mortgage
Before you even start looking at properties, you need to get pre-approval for a mortgage. Don’t just settle for a ‘decent’ mortgage rate with your usual lender. Instead, speak to various lenders and banks and find the best possible mortgage! Even if you find a lender who is charging you 1 per cent lesser than other lenders, you can end up saving a lot of money! So, make sure that you look for the right mortgage like you look for the perfect home.
Understand the expenses involved
Buying a property is not a one-time expense. From paying land taxes and property taxes to paying homeowners insurance and monthly mortgages, there are a lot of costs involved in the process of buying a new property. In addition, let’s not forget about variable costs such as the cost of landscaping, the cost of fixing repairs, and the monthly utility bills. So, before you start looking at properties to invest in, you need to understand precisely how much money you can afford to spend on buying this new property.
Follow the 1 per cent rule
If you are looking to invest in family homes which you can then give out on rent, you need to follow the 1 per cent rule. The 1 per cent rule states that you should be making at least 1 per cent of your total investment cost from the property in one month. So, if you’ve spent £270,000 on buying the property and £30,000 on renovations and repairs, then your total cost of investment is £300,000. So, you should be getting at least £3,000 as your return on investment every month. If you’re looking to invest in property in Cheltenham, even the letting agents in Cheltenham will advise you to follow the 1 per cent rule.
Considering investing in upcoming areas
One of the best ways for investors to make profits is by investing in upcoming and developing areas. Emerging neighbourhoods and developing suburbs are a great place to invest in property because investors can maximise their profits. Also, in the long run, investors will be able to sell their properties for higher profits because of the increasing growth potential in such areas. By investing in upcoming areas, investors will be able to buy bigger and better properties at relatively lower prices which will eventually benefit the long run. These investments will be highly profitable.
Always hire professionals and experts
Are you looking for available properties for sale in developing areas such as Gloucestershire or Cheltenham? In that case, you need to get in touch with estate agents in Gloucestershire! Not sure if the asking price of the property is too high? Hire a property evaluator who can give you a fair idea of the price of the property. Does the property require some plumbing repairs? Hire a professional to start repairing the damages, trying to find potential renters for your property? Ask professional stagers to stage the house and ask a professional photographer to take pictures for the online advertisers. You need to hire experts in order to get the best results!
It’s all about the location
It is always better to invest in an average property in a good location instead of investing in a great property in an intermediate location. For example, you could invest in a gorgeous cottage in the secluded foothills, but not too many people will want to live so far away. On the other hand, a decent three-bedroom home in an upcoming neighbourhood will have many takers! Therefore, you must find the right property in the right location.