Investment Pointers... What Not to Buy

When buying an investment property, it's important to follow your head - not your heart. Purchasing a quirky house with features that would not appeal to a mass audience will not help you to make a quick and profitable sale.

Do your homework before you start to look; make sure you find out how much properties are selling for in the area you are interested in. Take into account how much you will need to spend on renovation (if needed), the fees associated with buying and selling and the amount of capital gains tax you may be liable for.

Take a look at the following tips to help you to find the right property to maximise your investment:

Avoid the Following:

• Houses in rundown areas or areas with high unemployment.
• Poorly designed or quirky homes.
• Unusual or non-traditional houses without universal appeal.
• Small studio or one-bedroom apartments.
• Apartments attached to commercial premises; for example, above a shop.
• Homes prone to regular flooding.
• Property in towns without private parking and no free parking nearby.
• Characterless modern homes built in the '60s, '70s and '80s.
• Houses close to sources of noise, such as a busy road or airport.

Consider These Ideas Instead:

• Houses in an up-and-coming area.
• A large property that can be split into two semi-detached homes or converted into apartments.
• Property in a historic or university town.
• Well designed homes with wide appeal.
• Large loft apartments and penthouses with large balconies or patios.
• Houses with good road and rail links (or planned links).
• A property with the potential to add value, such as an extension or loft conversion.
• Houses with off-road parking or a garage.
• Period properties.
• Houses with a large garden, part of which can be sold off as a separate building plot.
• A property with good amenities close by, for example, shops, parks, schools and leisure facilities.
• Waterside properties.
• A property with outbuildings that can be turned into self-contained apartments, playrooms, studios or gyms.