Severn House, 1 Severn Road Canton, Cardiff CF11 9EB Tel: 029 2034 5191
WHERE TO BUY
Always buy in cities with Universities; always buy close to universities and close to town centres. Be careful some universities have there own accommodation for students and also have building projects to increase the amount of accommodation for students. You will not necessarily let to students but you will have a larger number of tenants looking for accommodation.
If you buy close to towns make sure you are buying in the right side of the town as you will find some areas close to town are more popular than others. Some areas also have a much higher crime rate than others.
If your intentions are to let houses to families make sure the property is in a good area and is close to bus or train services and there is a good school near by.
You have to decide what you are looking, a good income and modest capital appreciation or a modest income and good capital appreciation.
You can always guarantee that houses in good areas will give you good capital return.
WHAT TO BUY
This depends on how much money you want to invest. You can invest in houses which are already converted into flats and comply with the latest fire regulations. This is good source of income because if you have one flat empty the other flat or flats will still produce an income while you marketing the empty flat.
Houses which have two or three bedrooms are more suitable if you aiming for student lets or young single professionals to share.
Avoid houses which are bigger than three bedrooms. Houses with more than three bedrooms are more difficult to let these type of houses have a bigger turn over of tenants and need lots of extra maintenance.
If you aiming to let houses to professional people with families as single dwellings you should invest in two, three or four bedroom houses in areas as described above with good schools, good transport and facilities nearby.
If you intend to buy a purpose built flat, make sure that you are allowed to let it. Make sure that the yearly maintenance charges are reasonable otherwise it will reduce your profit from the income. Make sure that it has a very long lease of at least 99 years remaining or it is preferable if the free hold belongs to a company with the lease holders as share holders. You have to remember that if the flat is empty you still pay the service charges.
When you find the property you think you want to buy, please make sure you walk around the area in different directions and at different times of day to see what you think about the area.