demand". There is no point in buying a flat in a beautiful location if no one wants it. Many people look at factors like shops, facilities, transport, hospitals and general infrastructure in the local area, but it doesn't matter what is in the locale if people don't want to live there. Conversely, there may be no facilities at all yet people still want to live there, for whatever reason. Don't get tied up or bogged down in analysing the crime rate, council tax or schools, (although these factors can be important) if it is in demand then this is the most important factor to start your analysis of the property.

Similarly, you can’t buy a flat that is close to a university or hospital and expect to let it out instantly, many other Landlords hav

First hand research is critical, you can't believe everything you are told, so you must do your own research, this is normally referred to as Due Diligence. You can not hold anyone else responsible for the decisions you make, so you have to be as sure as you can be about the facts and information you have at your disposal. You will invariably find instances when you have to go with your best guess or gut instinct, but these situations should be in the minority, good research and credible information are paramount in the Property world.

One key thing to remember in the research process, if someone is trying to sell you something then they are not usually the best source of factual information, especially if they are working on a commission basis. Also, when purchasing off a development through a Finder or Broker, they may try to persuade you by saying that the deal is so good they are buying a few units themselves. On the face of it this is a powerful argument, but in reality it can often be just a sales ploy. Consider that the Finder will get a 1%, 2% or even 3% Finder's Fee on each unit they sell, multiply that across how many units they are representing in the development and you will see that, in many cases, they can afford to take a loss on the units they buy themselves (if in fact they are buying any), as long as they can sell the remainder. In other instances the Finder may have bought the units up front and then is selling them on for a profit margin as well as a Finder's Fee, this only increases their ability to make a loss on any units they may choose to buy themselves. Be wary.

What Type of Property Will You Buy?

Quite simply, the type of property you should buy is the type of property that is in demand. It doesn't matter what it is so long as other people want it and it will make a profit. These days builders and developers are building apartment blocks specifically for Investor demand, this means that they may have done no research at all into the area to see if people actually want to buy and live there or rent the properties, this is an example of supply. You are looking for the other side of the equation, demand. it is quite often a safer bet to look at traditional, established housing where the demand is easier to determine rather than some brand new building that has no history behind it. After all, there are only so many people that can or want to live in the inner city. Obviously once you have found an area of demand there must be a supply properties or you can't buy anything, but there are ways to generate supply in areas of high demand.

Supply and Demand

In Property there is an old saying that the three most important things in a property are "Location, location and location". This is true when comparing apples with apples, meaning that out of two similar properties the one in the best location will normally be most desirable. But when looking at Buy To Let it is more important to assess "Demand, demand and demand". There is no point in buying a flat in a beautiful location if no one wants it. Many people look at factors like shops, facilities, transport, hospitals and general infrastructure in the local area, but it doesn't matter what is in the locale if people don't want to live there. Conversely, there may be no facilities at all yet people still want to live there, for whatever reason. Don't get tied up or bogged down in analysing the crime rate, council tax or schools, (although these factors can be important) if it is in demand then this is the most important factor to start your analysis of the property.

Similarly, you can’t buy a flat that is close to a university or hospital and expect to let it out instantly, many other Landlords have

sis. Also, when purchasing off a development through a Finder or Broker, they may try to persuade you by saying that the deal is so good they are buying a few units themselves. On the face of it this is a powerful argument, but in reality it can often be just a sales ploy. Consider that the Finder will get a 1%, 2% or even 3% Finder's Fee on each unit they sell, multiply that across how many units they are representing in the development and you will see that, in many cases, they can afford to take a loss on the units they buy themselves (if in fact they are buying any), as long as they can sell the remainder. In other instances the Finder may have bought the units up front and then is selling them on for a profit margin as well as a Finder's Fee, this only increases their ability to make a loss on any units they may choose to buy themselves. Be wary.

What Type of Property Will You Buy?

Quite simply, the type of property you should buy is the type of property that is in demand. It doesn't matter what it is so long as other people want it and it will make a profit. These days builders and developers are building apartment blocks specifically for Investor demand, this means that they may have done no research at all into the area to see if people actually want to buy and live there or rent the properties, this is an example of supply. You are looking for the other side of the equation, demand. it is quite often a safer bet to look at traditional, established housing where the demand is easier to determine rather than some brand new building that has no history behind it. After all, there are only so many people that can or want to live in the inner city. Obviously once you have found an area of demand there must be a supply properties or you can't buy anything, but there are ways to generate supply in areas of high demand.

Supply and Demand

In Property there is an old saying that the three most important things in a property are "Location, location and location". This is true when comparing apples with apples, meaning that out of two similar properties the one in the best location will normally be most desirable. But when looking at Buy To Let it is more important to assess "Demand, demand and demand". There is no point in buying a flat in a beautiful location if no one wants it. Many people look at factors like shops, facilities, transport, hospitals and general infrastructure in the local area, but it doesn't matter what is in the locale if people don't want to live there. Conversely, there may be no facilities at all yet people still want to live there, for whatever reason. Don't get tied up or bogged down in analysing the crime rate, council tax or schools, (although these factors can be important) if it is in demand then this is the most important factor to start your analysis of the property.

Similarly, you can’t buy a flat that is close to a university or hospital and expect to let it out instantly, many other Landlords hav

this only increases their ability to make a loss on any units they may choose to buy themselves. Be wary.

What Type of Property Will You Buy?

Quite simply, the type of property you should buy is the type of property that is in demand. It doesn't matter what it is so long as other people want it and it will make a profit. These days builders and developers are building apartment blocks specifically for Investor demand, this means that they may have done no research at all into the area to see if people actually want to buy and live there or rent the properties, this is an example of supply. You are looking for the other side of the equation, demand. it is quite often a safer bet to look at traditional, established housing where the demand is easier to determine rather than some brand new building that has no history behind it. After all, there are only so many people that can or want to live in the inner city. Obviously once you have found an area of demand there must be a supply properties or you can't buy anything, but there are ways to generate supply in areas of high demand.

Supply and Demand

In Property there is an old saying that the three most important things in a property are "Location, location and location". This is true when comparing apples with apples, meaning that out of two similar properties the one in the best location will normally be most desirable. But when looking at Buy To Let it is more important to assess "Demand, demand and demand". There is no point in buying a flat in a beautiful location if no one wants it. Many people look at factors like shops, facilities, transport, hospitals and general infrastructure in the local area, but it doesn't matter what is in the locale if people don't want to live there. Conversely, there may be no facilities at all yet people still want to live there, for whatever reason. Don't get tied up or bogged down in analysing the crime rate, council tax or schools, (although these factors can be important) if it is in demand then this is the most important factor to start your analysis of the property.

Similarly, you can’t buy a flat that is close to a university or hospital and expect to let it out instantly, many other Landlords hav

the demand is easier to determine rather than some brand new building that has no history behind it. After all, there are only so many people that can or want to live in the inner city. Obviously once you have found an area of demand there must be a supply properties or you can't buy anything, but there are ways to generate supply in areas of high demand.

Supply and Demand

In Property there is an old saying that the three most important things in a property are "Location, location and location". This is true when comparing apples with apples, meaning that out of two similar properties the one in the best location will normally be most desirable. But when looking at Buy To Let it is more important to assess "Demand, demand and demand". There is no point in buying a flat in a beautiful location if no one wants it. Many people look at factors like shops, facilities, transport, hospitals and general infrastructure in the local area, but it doesn't matter what is in the locale if people don't want to live there. Conversely, there may be no facilities at all yet people still want to live there, for whatever reason. Don't get tied up or bogged down in analysing the crime rate, council tax or schools, (although these factors can be important) if it is in demand then this is the most important factor to start your analysis of the property.

Similarly, you can’t buy a flat that is close to a university or hospital and expect to let it out instantly, many other Landlords hav

demand". There is no point in buying a flat in a beautiful location if no one wants it. Many people look at factors like shops, facilities, transport, hospitals and general infrastructure in the local area, but it doesn't matter what is in the locale if people don't want to live there. Conversely, there may be no facilities at all yet people still want to live there, for whatever reason. Don't get tied up or bogged down in analysing the crime rate, council tax or schools, (although these factors can be important) if it is in demand then this is the most important factor to start your analysis of the property.

Similarly, you can’t buy a flat that is close to a university or hospital and expect to let it out instantly, many other Landlords have usually had the same idea. Therefore, you may face stiff competition to let your flat and this normally means you will have to lower your rent to compete or add some incentive, both of which directly affect the profitability of your business venture.

There may well be instances where there is genuine demand near a university or hospital, but you should be lead to an area and property by the demand and not the existence of local amenities that are currently present or promised for the future. Many times the sales patter will include future developments in the area like a new train station, shopping mall, cinema complex or something along these lines, it is best to ignore these things and focus on "day one" value and status.

How Will You Find Property to Rent?

Again, it is a matter of demand, but how do you establish demand? One simple method is the "Pin in the Map".

Before we discuss this method we need to digress slightly and decide what kind of return on your investment you are looking for. Do you want an immediate income from positive cashflow or are you looking for long term appreciation from capital growth? The two are not necessarily mutually exclusive, it is possible to find a property that will represent both investment options. However, as a rule a single property will tend to lean towards either positive cashflow which is best achieved in the North, or capital growth which is best achieved in the South. It must be stated that this is a vast generalisation but it is a very good rule of thumb when you are starting out. These investment types are dealt with in more detail below.

The North South Divide

So now you have decided which investment type interests you most, it is a simple matter of getting a map of England and drawing an East-West (horizontal) line across the country, roughly through Birmingham and Peterborough. This is your North/South Divide. Now take a pin, close you eyes and stick it in the map, in either the North region or the South region depending on what investment type you are primarily after. Find the closest town to where your pin has ended up and this is your starting point.

Now get the Yellow Pages, Thompson Local Directory or whatever resource you prefer and find all the Estate Agent and Letting Agent addresses and telephone numbers in that area. It is normally best to visit the area and physically walk the streets but you can make your initial enquiries over the telephone. Contact the local Letting Agents and see if they have Tenants waiting for places to rent, i.e. demand. if so, ask what kind of places are in demand, 1 bedroom, 2 bedroom, etcetera. Find out what the local market is like, do people generally want a flat furnished or unfurnished, is a parking space important and any other likes or dislikes. There are many factors to consider and enquire about, make friends with the Agent and get them talking about what is going in their immediate area. Local knowledge is often the edge