Property is increasingly becoming a largely competitive and complex business requiring a lot of different skills that are in line with the dynamics of the contemporary trend of property investment. Property investment is increasingly expanding due to a few reasons that include the increasing demand of the public towards more and more accommodation, and the public interest of the UK people for big and beautiful houses. political stability and more job opportunities make the UK the most desired destination for overseas.

But all the same, only those investors are thriving who are equipped with the latest skills and techniques to make informed and right decisions.

 We have conducted incredibly extensive research by consulting different sources to find out the most incredible information and knowledge to help you make informed decisions.

Why Research and Market Analysis Are Essential?

The first thing that has a significant role in the property market is conducting research to find what properties are available before investing in the property. A few prominent things are basic to know about such as the cost of the property, and whether the property meets your needs or not, this is called market analysis or Due Diligence.

Research is the starting point for any successful property investor, says editor Ellen Klein, but there are many important decisions to make along the way, too.

To start off the process, it is important to investigate every aspect that will bring long-term benefits, Klein says, ‘Research neighborhood and housing prices, save up for your down-payment and ensure that you are pre-approved for a mortgage so that you can pounce when the right opportunity presents itself,’ she says.

By analyzing different aspects of the property, you will be able to quickly identify whether a property purchasing opportunity is a DEAL or NO DEAL.

When you start working on this, it will consume a great of your time and may dissuade you from investigating different deals simply because you don’t have time.

It is a time-taking process to analyse the market that involves gathering information about the local area and identifying one property out of many having the potential to provide income and higher returns on investment.

To be able to make an informed and productive decision when buying property, it is imperative for you to have a profound understanding of the prevailing market trends and historical data using sites such as RightMove and Zoopla.

It also includes researching what are the property priorities of other people in that area such as how similar properties are being marketed and what rent is being charged. This will allow you to identify the areas performing well and where may be the possible options for improvement.

Why researching property is necessary?

Researching properties is important as there are a few things that become quite clear when researching the property and then make great impacts on your property investment decision such as demographics, growing areas, and property history.

Find Growing Areas

You might have often heard an often-repeated statement in property-focused publications: ‘Invest in places that are seeing growth’. You can expect lower house prices if you invest in a growing neighbourhood and over the course of time, as the area grows, it will increase the capital gains and demand in the rental market.

There is no exact science in looking for an up-and-coming neighbourhood, no one has a crystal ball, but there are some key indications that suggest what direction the place might go. To comply with that strategy, you should purchase the property before it moves up. If you wait till the growth of the property, the house price and demand will rise. So, to avoid that risky strategy, make an immediate decision. This technique can really pay you off provided that you research and invest wisely.

First, familiarise yourself with the indicators of growth and from where you can get further relevant information. Before stepping in, keep in mind, there are many sources from where you can get data but there is always a possible risk that planned developments can get withdrawn or the neighbourhood perform contrary to what you expected. Doing vast and extensive research greatly increases your chances of finding an area that’s poised for growth, but we also want to make it clear that this strategy involves risk too.

Use different resources to get background information.

As we mentioned above, the location of the property has a massive role to play, when researching your next investment, remember that there are multiple sources to find out about market trends.

For example, the HomeLet Rental Index gives insight into the UK rental market such as month-to-month trends while property portals give you a general idea of average rents and yields. The Council of Mortgage Lenders (CML) and Hometrack also offer in-depth market analysis.

Meanwhile, tools like Property Detective and Dataloft can help you analyse local amenities and demographics, helping you decide which location is the most suitable for you.

Talk to other investors and landlords

During the initial stage of researching a new investment, it is important to develop connectivity with other landlords, based on their experience, they have a much better understanding of property-related matters.

There are different online forums that are a very useful way to find out which types of properties landlords find the most profitable, and how they approach new investment.

If you are looking to make an investment in an area that is far away from your residency, the best strategy to wisely approach that property is to ask local landlords about the pros and cons of that area before finalizing the deal. They will give you a good idea about the rent you could be charging, popular streets, and property types as well.

Visit Investment Locations

While you can get the information you need from a remote online search, nothing can be compared with visiting a prospective investment.

By physically visiting the location, you get a better understanding of the surrounding area and nearby amenities. You also improve your understanding of the rental trend of the local market, investigate the property stock and contact local letting agents.

If there is any specific property in your mind, it is much better to view it with the selling agent so that you could inspect and determine if it is suitable as a buy-to-let investment.

Of course, a letting agent based on his experience with the local market will give you a detailed view of the current market and demonstration of the tenants’ demands in that area.