How To Analyse Property Deals
Manage episode 448919253 series 3504934
On today's podcast, Mark discusses how to effectively analyse property deals.
Mark highlights a common misconception among young investors: focusing too much on price. While the price is important, it’s not the only factor that determines a property's potential. Instead, Mark advises looking at the surrounding area and the prices of nearby homes to get a clearer picture of the property's true value.
He also suggests paying close attention to the layout and number of rooms in a property. Properties with 4+ rooms can provide higher rental returns, making them more attractive investments.
Mark emphasises the importance of researching the history of properties in the area, particularly in terms of capital growth. A strong history of price appreciation is a good indicator that the area is likely to continue growing.
Lastly, Mark cautions that "below-market value" deals aren't always the best opportunity. While they may seem like a bargain, they can sometimes cause friction with landlords or agencies. In some cases, it might actually make sense to "overpay" for a property, especially if the rental income will offset the higher purchase price.
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