For any new property that I buy and renovate, I will always make it compliant with any current regulations for that property type in that location. If I am unfamiliar with the location, I will contact the council and ask about minimum requirements. This way, there will be no ambiguity when I come to resell or let the property.
I will do this regardless of whether my intention is to use the property as a House In Multiple Occupation (HMO) or not. For example, I will aim to do the following works as a minimum during any property renovation:
-Install interconnected smoke alarms and heat detectors.
-Install fire doors to kitchens and bedrooms.
-Have the electrical installation checked and upgraded to current standards.
-Ensure gas fittings and appliance meet current safety standards.
This will save me time and money at a later date, especially if I decide to use the property as a HMO.
For any business, 'Cashflow is King'. Whenever I buy property, I always invest for cashflow. There's little point in buying a property in a great area for a lot of money, if you're not making positive cashflow from day1. Learning how to better manage cashflow can make the difference between your success and failure in business.
It doesn't matter if you think that your favoured location will generate great capital growth. The question you need to answer is whether you will be able to sustain that capital growth on negative rental returns.
1.HMOs are a great way to obtain substantial cash flow from your properties. It is not uncommon to achieve up to 300% returns over and beyond single occupancy rentals in high demand locations all over the UK.
Since HMOs provide much needed affordable housing, particularly for younger people, there is a strong market for such accommodation.
A HMO property will not only give you additional cash flow, but you will also benefit from the usual advantages of owning property. For example, you will have good capital growth depending on location and market conditions. Furthermore, it is not always necessary to fill all the rooms to service any finance payments.
If you plan your property purchase carefully, you will be able to grow your portfolio quickly and with minimum effort. By applying some basic rules and understanding current market conditions, investing in property should provide you and your future generations an income for life.
Before you buy any property in Cyprus you should always seek the advice of an expert real estate agent and lawyer. In this regard, the following is a quick checklist of some of the basic things they should be checking: 1.Doing a land title search at the relevant District Land Office - this is done to make sure that the seller has a valid land title deed, which should also tell you whether there are any mortgages or other claims over the property; 2.If the property you are buying is still under construction, which many are, then your lawyer should be checking to see whether the project has the proper planning and building permits. Also, make sure the land title deed for the project has been split into individual deeds and not one deed for the whole project; 3.If you buy land to develop yourself, make sure your real estate agent checks that the land can be developed: for example, that it has easy access to a road; telephone, electricity and water facilities, etc. 4.If you are buying leasehold property, where the lease term will exceed 33 years, you'll need to make an application to the Council of Ministers in much the same way as if you were buying freehold property - so make sure your lawyer does this; 5.Insofar as the contract is concerned, make sure that the contract contains provisions that: a.the sale/purchase is subject to you obtaining all the required permissions; b.possession is taken upon execution of the contract, or completion of the project, whichever is the earlier; c.for the purchase of a flat, general use and maintenance rules are included in the contract; d.the contract contains an unwind/refund provision, in case you need to get out of the contract before you take possession of the property; e.where the property being purchased is a new development, the contract contain a warranty period for the construction; f.where the seller is a company, that the person signing the contract is authorized to do so; and g.whether the seller is a person or company, the contract has been witnessed by at least two witnesses of legal age.
Both Javaid Kiyani & Mark Vurnum are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Javaid Kiyani has sinced written about articles on various topics from Real Estate, Property Agents and Management Software Solutions. Dr Javaid Kiyani is a successful Property Investor and Internet Marketer. His vast knowledge of is evidenced by the books he has written. For. Javaid Kiyani's top article generates over 12100 views. to your Favourites.
Mark Vurnum has sinced written about articles on various topics from Business Loans, Property Guide and Lead Generation. Mark Vurnum provides useful information about buying property in Cyprus. Visit www.yourcyprusproperty.co.uk for more FREE information. Mark Vurnum's top article generates over 6600 views. to your Favourites.