Investing in real estate can be a fantastic way to make money but not every house will set the market alight. If you’re an investor, or you’re looking for your first real estate acquisition, here are some tips to help you find the right property.

Value and Potential

Investing in real estate is very different from falling head over heels in love with a new home. When you buy for investment purposes, focus on the figures. Look for value and the potential to add value once you own the property. Be prepared to negotiate on the price, research the market and look for emerging trends to ensure you make your move at the right time. If you’re interested in a project, identify ways to maximize the selling price. Extending, renovating kitchens and bathrooms and adding features such as a garden room or an outdoor office or home gym will enhance saleability and boost the price.

Star Quality

There are thousands of houses and apartments for sale. As an investor, it’s always beneficial to look for properties that are going to stand out from the crowd. Look for homes that have a backstory or houses with star quality like the property of Hugh D. Fuller Jr. or consider revamping an old building. From mills and warehouses to chapels, developers are converting all kinds of premises into unique homes. Think about what would attract you if you were a buyer.

Location

Location should always be a priority for investors. The location of a property tops the list of requirements on buyer wishlists and many people are unwilling to be flexible. The location you choose should appeal to your target buyer or tenant. If you’re marketing a family home, for example, you want to buy near excellent schools and amenities like leisure facilities, grocery stores and green spaces. Location plays an integral role in determining prices. In some cases, moving the boundaries a couple of blocks or a few miles can have a dramatic impact on prices. If you can’t afford to buy in established real estate hot spots, look for opportunities to invest in up and coming areas. This is a fantastic idea in cities and large towns. Signs of regeneration, building and new business development can all be promising for real estate investors.

Selling Points

Many buyers will enter into a search for a new home with a list of requirements. When you invest in bricks and mortar, it’s wise to look at houses and apartments that cross the boxes. Consider what your ideal tenant or buyer wants and search for properties that are packed with popular features and selling points.

A Clear Target Market

All of the points above have their place in your real estate investment strategy. However, they’re not going to be as effective as you might hope without a clear idea of who you’re selling to and what they want. A luxury real estate investment is suited for high-end buyers who expect it to enhance their lifestyle more than anything else. Whereas a small family is looking more at the essentials, such as having enough space and transport links for commuting, school, and the like. Know your audience and know how the property you’re looking at speaks to them.

Finding an investment property is a very different proposition from looking for a house to call home. When you start your search, think about who you want to sell to, what they’re looking for and how you can add value and set your property apart. Research locations, keep an eye on the market and look for potential. Put yourself in a buyer’s shoes, keep a firm grip on the figures and consider your options carefully before taking the plunge and signing any contracts.