Research Tips

Buying property involves transactions of very large sums of money, and no purchase should be undertaken lightly. Of course, there are no hard and fast rules to guarantee a profitable purchase every time, but there are certain measures an investor can take to ensure they are making a well-calculated decision.

Above all, research, research, RESEARCH!!

Below are just a few steps that can taken to establish whether you are buying a bargain or paying over the odds.

How do I determine the approximate value of a property?

The approximate value of the property can be easily researched through looking for comparable properties in the area. These comparables can be found either by looking in local newspapers, estate agents windows, talking with estate agents or checking out other property websites.

Alternatively, you can ask an estate agent to value the property prior to purchase. Be warned, most estate agents will charge to do this as they may quickly realise that they'll not be getting any follow-on work from it.

For a formal valuation, you should make sure that the estate agent is also a qualified Chartered Surveyor under the Royal Institute of Chartered Surveyors (RICS).

Other handy tips include:

Compare Property Prices – The Land Registry’s website Landreg.gov.uk provides comprehensive data on all properties sold, inculding type of property and sale price. This service is not free. For a free and very navigatable alternative, albeit slightly less comprehensive in terms of detail, try either Net House Prices, Mouse Price, or Our Property.
Property websites – A useful first point of call for comparables is to look on RightMove.co.uk, PrimeLocation.com, and PropertyFinder.co.uk. These sites have such a huge amount of property listed, you can get a real feel for prices in any given area. What House's new website offers a comprehensive research tool which is handy for both investors and also those searching for a home.
Local Knowledge – There is no better way of finding out how rentable an area is than talking to local agents (estate or lettings), so get on the phone to them! For a comprehensive list of agents, please CLICK HERE. Investment magazines and simply talking with other Landlords is also very valuable. For this reason, Landlord Trader encourages the use of the Landlord Trader investor forum.

How do I determine the rent on my property?

Again, comparisons can be found by looking in local newspapers, talking to local lettings agents and looking on rental websites. Good websites for comparables in the lettings market include: RightMove.co.uk and PropertyFinder.co.uk.

Please note that this factsheet should not be seen as advice. Potential vendors should speak with a solicitor if unsure of their legal situation.