A Practical Guide to Understanding Investment Property For Sale In UK

Are you considering buying an investment property in UK? Then, take a deep breath and look for the best possible investment property for sale in UK on our widest range of property database that match your investment goals.

Maximizing the chances of an optimal realization from investment property:

Developing a strategic approach to investment in property for sale in UK needs lot of researches. Selling an investment property can be rewarding financially if you understand the pros and cons of the investment process and can predict what sort of rental revenues and capital appreciation can be achieved via such space investment.

Becoming a successful investment-property owner requires that you do whatever it takes to rent or sell your property, respond to your clients needs and maintain your property so that it can be easily rented or sold at expected prices.

To become successful, you must actively seek renters or buyers and do on-time repairs and renovations of your property that will increase your property value.

Be a successful investor with Midas Estates:

Always remember, investing in investment property for sale in UK is a challenging job. You must know the tricks and tips to make the venture profitable.

Whether you are looking to dip your toe into the market for the first time or you are a seasoned investor with an established portfolio of properties, Midas Estates provides the deals and the information that can help you take the next step towards building your wealth with investments in property for sale in UK.

Our goal is to provide an open, honest, ethical and transparent services to all our clients that we can be proud of. Through us you can have access to some of our directly sourced deals to sell your property to your own clients, web users or investor clubs or an existing client.

So explore new opportunities in investments and reap the benefits of your deals.

Waterfront Property for Sale – What to Consider

Depending on where you live, waterfront property for sale can be very expensive. Before you start looking at this type of property there are things you should consider.

Water activities you enjoy

When you are looking at waterfront property for sale this is a big factor in choosing the right property. You want to make sure that the property will make it easier for you to enjoy your favorite water activities and to explore new ones.

• Fishing-if you or someone in your family enjoys fishing you should look for properties that have easy access to the water. If you want a wide variety of fish to catch look for properties that have deep bodies of water. You want to also make sure if you can fish the entire lake or if you are only supposed to fish within your property lines. With a river, there are usually no boundaries.
• Boating-the size of your boat will be a crucial part of finding a waterfront property for sale. There may be some waterfront properties that you cannot bring a large boat into because of shallow water. It may not be feasible to bring a boat in because of tides. You should also check to see if there is a boat dock or if you have to build one.
• Canoeing or kayaking-on some waterfront property the water is a busy lake or river where there is a lot of boat traffic and if you enjoy canoeing or kayaking, you might want to consider property where the water is peaceful and not much boat traffic. You do not want to be on a busy lake or river where there are ski boats with skiers, jet skis, speedboats, etc.

Determine your needs

This is important because some waterfront property for sale does not have a home on it but instead has a camp or cabin suitable for summer and fall getaways but not for permanent living. Many times these cabins or summer homes do not have central heat, the right insulation or have a water source for year round use. If there are medical needs, you want to make sure that the waterfront property for sale is convenient to the hospital. If you plan on coming in on the weekends after working all week, you may look for one near an airport. Do you want you want your property on a river, lake, or ocean? The location can make a difference in price.

When looking at waterfront property for sale choose a real estate agent that is familiar selling this type of property. To make your choice easier keep a checklist of the pros and cons of each property and then make your decision.

How to Quickly Determine the Value of Commercial Property for Sale

The value of a commercial property for sale is determined by using some simple formulas that are based upon the amount of net operating income that the property produces each year. So when you are looking at a commercial property for sale, one of the first things that you’ll want to ask the broker for is the profit and loss statement.

Some brokers who have listed a commercial property for sale may refer to this profit and loss statement as an IPOD, or income property operating data sheet. Once you get the IPOD, or profit and loss statement, you can then compare the information provided by the broker or seller to your other sources to help determine what the real numbers are. The challenge when looking at any commercial property for sale is that the broker and/or owner will often tend to exaggerate the amount of income that the commercial property for sale produces while also trying to minimize the amount of operating expenses that are reported.

How to Determine the Value of a Property for Sale

The reason for this is simple. The value of any commercial real estate is based on the amount of net operating income the property creates each year. In fact, each additional dollar of annual income increases the value of the property by roughly ten dollars, depending on where the property is located, and how old it is. Note that this extra net income can come from either getting additional revenue in rents, or from reducing expenses by managing the property more efficiently.

Once you understand that owners of commercial real estate will tend to present unrealistic numbers in an attempt to get a higher price for their property you’ll understand better why it’s necessary when looking at any commercial property for sale to get to know the market you are investing in. When you know what the rental rates in an area tend to be or what the typical expense ratios are for a twenty-five year old apartment building then it’s much harder for the broker or owner of a commercial property for sale to attempt to pull the wool over your eyes.

Verifying the Income and Expenses

The first step in verifying the income of a commercial property for sale is to ask for the rent roll. The rent roll is a list of what each apartment, self storage unit, mobile home lot, or office space rents for. Make sure that you get the actual rent roll because the owner or broker of a commercial property for sale may try to give you a Pro-forma rent roll instead of the actual rent roll. Pro-forma means that there is an expectation, realistic or not, of getting higher rents than the property is currently getting. My response to this has always been, “If you raise the rents up to match the pro-forma, then we’ll use the higher income amounts, otherwise we’re going to base our valuation on what the property is currently producing in income.

When looking at the expenses from a commercial property for sale, remember that you’re trying to come up with the actual amount that it will cost you to operate the property rather than what the seller’s expenses have been. So while it’s helpful to know exactly what the seller’s costs have been, I’ve learned NOT to rely on the information provided by the seller when looking at a commercial property for sale because this information is almost always inaccurate.

A Simple Formula to Use for Expenses

The expenses will vary depending on the type and age of the commercial property for sale. For example, if you are looking at buying a Class C apartment building which is at least twenty-five years old, then the expenses will run between 45 to 50 percent of the collected income each month. The collected income, known as the Effective Gross Income, is what’s left after the cost of vacancies are subtracted from the total amount of rents on the rent roll from the commercial property for sale.

The final step in determining the value of a commercial property for sale is to divide the net operating income by the capitalization rate, which varies from about 6 to 12 percent depending on the type of property, the age, and the location of the commercial property for sale. The fastest way to get an idea of what capitalization rate you should be using when looking at a commercial property for sale is to ask another broker who is not involved in the transaction.

Using Escape Clauses to Limit Your Risk

Another way of protecting yourself when looking at any property for sale is to make sure that your purchase contract allows you a period of time to get out of the deal if you are not comfortable with anything that you find. Done properly, you can often tie up a property for 60 to 90 days so that you have time to accurately determine the real value. This makes it easier to look at commercial real estate, because you can get out if you have the right escape clauses.