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Mastering real estate investing requires more than sitting at a desk, looking at a computer screen. It also necessitates traveling to various cities, exploring the local market, meeting people, creating contacts, and generally gaining an understanding of how things work. Nowhere is this more critical than in some western cities, the hottest property markets around and desirable locations for people across the globe to live. These cities are famed for their luxury, characterful properties, and new high rises. So, how can you plan a property scouting trip? What should you be looking for on your adventures?
Decide What You Want to Achieve First
The first step is to think about what you want to achieve during your trip. What are you looking for?
Many visitors will want a rental investment, and some cities are certainly full of those. Many are famous for their residential properties, many of which can command premium rents.
However, it is also worth going there if you want to put money into commercial property. Buying offices and industrial buildings on the outskirts can be another way to make money and help the local economy meet its demands on the supply side.
Of course, as you go through this process, you’ll need to think about stamp duty and the city’s high property prices. Other considerations include legal fees, the location, the property type, and whether you want to live in the center or the suburbs.
Many property prices depend on proximity to transport links, so you should consider these as well when planning where to buy. Those above or close to planned stations or routes are often worth much more.
Research The Property Market
The next step is to think about the property market in more detail. As a whole, these cities are cohesive, but they have distinct property zones, all with variable prices.
The best way to approach this research is to track prices on platforms like Zoopla and Rightmove. These allow you to collect data and see how things are evolving.
You can also look at future projects and plans for the area. For example, property prices near a shopping center can shoot up when planning permission is granted for a complex, revitalising the surrounding area.
Hire A Local Expert
When planning a property scouting trip, you’ll also want to hire a local expert–someone who really understands what he or she is doing. Usually, estate agents and investment advisors usually understand the market better than anyone since they have to deal with it daily.
Where possible, look for people who are used to advising international investors. They can often point to more detailed location information and provide an overview of the city that is relevant for the investment types you want to make.
You could also hire a buyer’s agent if you want someone to represent you. This person is usually native English speaker and can negotiate with landlords, developers and property owners on your behalf to ensure that you get the best possible deal for your property.
Plan Your Trip’s Logistics
Next, you’ll need to think about the logistics of your trip. Staying in some cities can be expensive, so you might want to use luggage storage to lower the cost, keeping your items there while you look around the city, and then going to a hotel elsewhere.
The spring and autumn are the best times to visit most cities in the northern hemisphere as the temperatures are mild and the markets are more active. Things tend to shut down over Christmas in many countries, and, to a lesser extent, in the summer when people go on vacation, making it more challenging to get deals done there and then.
You could stay in a central location, but beware of accommodation charges. Most visitors pop in for the day and then travel to the country’s other areas, unless they have the budget, of course.
Schedule Property Viewings
Once that’s done, the next step is to schedule some property viewings. You can usually view between 5 and 10 in a single day, so make a shortlist of the most interesting and consider them.
Estate agents are usually quite flexible, and some property owners will actually show you around their homes or businesses themselves–it all depends on the platform you use.
Public transport options are usually fairly reliable in places like Europe, so you can pack in a number of viewings quite close together. If they are on the same street, that’s even better, but even if they are across town, you can usually get to most locations within an hour. Just route plan your trip so you’re not going backwards and forward unnecessarily.
Going by road is an option, but that usually only works if you are looking in a specific area. Trying to drive across a major urban area is usually impractical due to traffic issues.
Explore Neighborhoods
If you’re particularly interested in an area, it is well worth exploring it more on foot and just walking around. This gives you an up-close impression of what to expect and how things function locally.
Usually, you can get a sense of the vibe in a couple of hours, including whether it’s safe. You can also check how easy it is to get around for work and school, especially during peak hours.
Document and Compare
Finally, you’ll want to keep records of all the properties you visit, document them, and then compare them to see whether you like the layout and features. Then, you can use AI to create a ranking system, allowing you to prioritize your investments as you see fit.
This discipline allows you to be more rigorous with the property choices you eventually make. You’re not just choosing a location or a specific building because it appeals to you emotionally, but are relying on calculations and other methods to ensure you get something that really works for you long term.
Also Read: Why Off-Plan Homes Are a Smart Choice for First-Time Buyers