what long distance checks can I make on a property and area before buying?

[Lwrake]

Hi All,

 

I made a comment on the BMV FB page and as a result have been offered two properties to buy in swansea. I have heard independently through an Estate Agent that he invests in south wales so thought this might be an area to investigate further. 

 

The properties are coming to me directly from a builder who is flipping them and wants to cash out quickly so he can proceed to his next project. He has offered both at 10% BMV ad suggests that the rental yield will be about 7%.

 

But properties are a 6 hour round trip for me to view so what can I do online right now to see if this deal stacks up before I get in the car and do a major expedition? (Ultimately I am happy to buy out of my area so long term Im not worried about the distance.)

 

1. Assuming I do the standard Rightmove/zoopla checks on local schools, proximity to transport links etc.
2. Assuming I call letting agents in the area to suss out demand and actual rental prices? Any tips on how to word this question?!
3. How can research an area has development potential and future prospects?
4. Land registery research on the area to see any house price movement over long term?
5. Finally I guess a Hometrack valuation

Are there any other desktop searches you more experienced friends would recommend? I am new to this and very cautious. Oh and of course I need to be quick ! 

 

Many thanks

Lisa

 

[Tim Wragby]

Lisa hi,

 

If a bargain is too good to be true it usually is.  This is classic territory for scams and people off-loading properties that won't sell elsewhere.

10% BMV looks a fine margin to be talking about and I would do your homework on comparative values to confirm that this really is the case as 10%+ is easily negotiated off an agent's asking price and at least they should have done all the correct money laundering checks and hopefully done al the usual checks to comply with Consumer Protection law.  Depending on how much risk you are willing to take I personally would use more formal routes until a seasoned investor as buying through Facebook contacts would seem to me a high risk strategy for modest gains of an alleged 10% BMV gain.

 

If you are buying long range how are you going to manage the letting of the property?  Did you realise that the laws in Wales are changing and you will have to have a license and I think an approved agent if you are out of the area so check the liabilities for being a landlord out of the country and what the additional costs are.

 

If you are using an agent you will need to do your homework on which agent to use to check that you are going to get real value for money.  This is probably not the cheapest as the lower the price tag the poorer the service is likely to be as they will probably either be inexperienced or taking short cuts both of which can cost you many multiples the cost when things are done wrong or badly.

 

Checking the demographics and crime statistics of the area can be done on good sites 

www.streetcheck.co.uk

www.checkmyarea.co.uk

www.checkmystreet.co.uk

 

These are not foolproof and need to be used with an eye to them being bulk produced so using publicly available data and so some interpretation is needed - but good none the less

[Lwrake]

Thanks for the tip on the changing laws in Wales - I had no idea. I will also be researching managing agents before I actually buy anything that isn't local. I am still keen to invest in this area so want to find a way to make it feasible. 

 

I didn't buy the properties in the end - I think the 10% discount was perhaps a little creative and a similar deal would be be fairly easy to find direct fro an agent as you say.

 

Many thanks for your reply.