As people have shown time and again, it is perfectly possible to enter the real estate business with nothing more than a regular income and a keen eye for detail. The first property you flip might seem daunting, but Bath is especially well-suited for this purpose since its real estate market has seen a significant growth even during years of economic crisis.
Given its proximity to London and its background as a historic city, Bath is the ideal environment for a first investment. The prices here are still affordable – for the time being – and the risk is minimal due to the ever-increasing popularity of local real estate.
Research Is Key
When you start with a budget under £40,000, it can be difficult to find the right first property. Fancy areas of Bath might be too expensive, while less attractive locations might lead to a bad investment. As such, you have to put in additional research and find those ideal up-and-coming neighborhoods where prices are still affordable and homes are likely to sell in the near future.
This type of research can take a great deal of time, from a few months to a whole year. If you’re in a rush (although it isn’t a particularly good idea to invest in a real estate project if you are), you can consult a few real estate agents in Bath to get a more informed second opinion. For example, Pritchards have worked in the area for decades, which means that they can put an impressive knowledge base and network of contacts at your disposal.
Become a Fierce Negotiator
The more you can shave off the asking price for a property, the more likely you are to buy a better home that fits in your budget. Even before being fixed, a property is appraised at a certain price. If you manage to negotiate down from this initial price, you’ve already put some funds into equity.
This can be a strong point when you meet up with money lenders and ask for a significant loan even though you don’t have the financial statements to support it. The fact that you’ve already included equity into the deal through negotiation is likely to land you the loan in spite of a modest income.
Consider Multiple Back-Up Plans
Perhaps the most important thing to do before you even consider buying a property is to set up multiple exit strategies. If something comes up and you are not able to either fix or sell the home you’ve purchased, what are your options?
A few good strategies include holding the property for the long term, renting out the property until you do manage to find a seller, or wholesaling it right away. No matter what your long-term goals are, it is essential that you have several back-up plans. Otherwise, your first investment can easily become your last.
Naturally, the entire affair might seem daunting. Such large investments must be made with great care, so it’s always a good idea to consult several local real estate agents before buying your first property in Bath. After all, more information can be instrumental in making the right choice.