Finding Investment Property for Sale

Probably the hardest part of your job as a property investor is going to be finding suitable investment property for sale in your area. There are undoubtedly thousands of suitable properties around the UK but if you don’t want the hassle of traveling you’ll need to look close to home. Unfortunately not every area can boast an impressive array of affordable investment property for sale around the year, so where should you start your search?

Auction Houses and Estate Agents

 Most areas in the UK hold property auctions 3 or 4 times each year and they are great if you want to find investment property for sale at below market value. They aren’t so great if you want a property ready for renting out the minute you complete the purchase though. Most auction properties require modernisation or refurbishment before they become rentable so keep this in mind if you have limited funds.

 Estate agents are also worth a look for below market value properties. Admittedly the properties may not be advertised as BMV properties but if they have been on the market for more than 6 months and they have seen a few price drops since going on the market then the vendors may well agree to take a lower price just to sell. Even if they reject your offer you won’t have lost anything, and you might just bag a great investment property for a very good price.

Off-Plan Developments

Buying off-plan is another way to buy investment property for sale at affordable prices. Obviously you’ll need to find an interesting development in your area and this isn’t always possible in smaller towns and rural areas. In bigger towns and cities though there are always a few development opportunities flying around, and as you generally only need a couple of thousand pounds in the first instance to invest they do offer the potential to make you a profit.

The main drawback to off-plan property investment is of course the fact that the property won’t make any money until it is actually built and occupied…unless you decide to sell when the development starts. For buy to let purposes though you need to be sure that the finished property will be in demand when built, which could theoretically be in 2 or 3 years’ time.

Lease Options

A less well-known method of finding investment property for sale at affordable prices is to use what are called lease options. Entering into a lease option gives you as the buyer the option to buy a property at the end of a fixed term (normally between 2 and 5 years) for a fixed price. Until that time you take control of the property and rent it out as the landlord, even though you don’t technically own it.  

When the lease option expires you can either buy the property at the agreed price or you can end the arrangement and hand the property back. Lease options can in some circumstances be bought for as little as £1 and the agreed price for the property might be considered a decent price now but in five years’ time when the option ends it could be well below the market value…so making you a huge profit for very little investment.