Before we look at the various elements which indicate a “good property deal” it is worth reminding ourselves that everything is relative. At this moment in time, we live in a world where interest rates
are near historic lows and finance is quite cheap. As a consequence, in relative terms, not as much income is required to cover ongoing finance costs although there are other costs associated with buy to let properties. However, let’s take a look at what constitutes a good property deal in the wider context.
Acquiring a property below market value
It goes without saying that acquiring a property below the market value
, for a variety of different reasons, is the Holy Grail of property investment. This effectively means that from day one, even taking into account mortgage
debt, you have positive equity
in the property. This opens up a myriad of different options further down the...