Investors

You thought you had problems...

The National Landlords Association noted some of the problems faced by landlords during 2007:

A landlord allowed two years to elapses before visiting, and hence inspecting, his property. During those two years, his tenant relocated the kitchen to another room. The tenant also demolished a brick out-building and built a large conservatory in its place.

A landlord obtained a court order to evict an anti-social tenant but before the order was served, the tenant scarpered, taking the whole central heating system and double glazing with him.

Another landlord belatedly visiting his property discovered that a long-term tenant was subletting a room in what had been a garage. The tenant had removed the garage door, replaced it with a brick wall and a window, and joined the garage to the house by knocking through the adjoining wall. This was the "room" that the tenant was sub-letting.

Here's the Entrance, Where is the Exit?

For investors as well as owner-occupiers, nothing is more important than location. But for investors, timing is also critical - buy at the wrong time and you get lower returns. Similarly, if you sell at the wrong time, your bottom line can be badly hit. Shrewd investors go into that market with a clear exit strategy.

So Many Questions, So Few Answers

Should you buy a flat that already has a sitting tenant? (The answer used to be a firm 'No'. Not any more, thanks to the prevalence of short-term leases.

To furnish or not to furnish? And if to furnish, what quality furnishings should you provide?

What requirements do you need to meet in terms of gas and electric safety and other laws, rules and regulations?

Manage it yourself or hire someone to do it - and the pros and cons of each?

Buy here or abroad?

Some Answers

The answers to many questions are available free and come from authoritative sources: estate agents. They know the kind of properties tenants are seeking in their areas. Landlord organisations are also excellent sources of information.

Some questions are harder to answer, or vary from individual to individual. For example, how much risk should you take on? Some investors are more comfortable emotionally as well as financially with high risk.

Whatever your attitude toward risk, it is crucial for you to determine the level of risk you will be taking on. Go in with your eyes wide open.

Average Prices: Major Cities Worldwide

Citing the Global Property Guide, Halifax says that the priciest city for property (in terms of price per square metre) in 2008 is London, followed by New York, Moscow, Paris and Hong Kong.

London is the clear leader: £9,805 per square metre, which was almost £2,000 more than the £7,919 recorded by New York and £7,729 for Moscow.

Places six to ten were taken by Tokyo, Singapore, Mumbai, Barcelona and Geneva.

The Global Property Guide (www.globalpropertyguide.com) is based only on upper-end apartments in prestigious areas, and excludes new builds. The UK-US exchange rate was approximately $2 to one pound.

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Property Without Pain

The Informed Way to Buy, Sell and Own a Flat or House

Investors

Buying your first home? PWP has a section dedicated to first-timers and special features in the Articles section.

Thinking of a kitchen or loft extension, a conservatory or other building work? PWP's builders section highlights the pitfalls.

Investors

You thought you had problems...

Here's the Entrance, Where is the Exit?

So Many Questions, So Few Answers

More Questions

Some Answers

Average Prices: Major Cities Worldwide