The Business Exchange Swindon & Wiltshire April/May Edition 2015 | Page 24

COMMERCIAL PROPERTY Hear it from the experts… Do your homework With Dave Whaley, Martin & Co, Swindon Following on from my last article on maisonettes, where I strongly recommended that you do your homework, I have another example of how you can easily jump to the wrong conclusions if you do not do your research. An experienced landlord, from north of the border has recently showed an interest in growing their portfolio in the and chose Swindon as being a good location to spread their wings. This is a wise choice judging by the current demand for rental properties within the Swindon postcode areas. Their only problem was not knowing the area, so location and what quality of properties to purchase was a challenge. After an initial conversation with us, we decided to look at three properties, all one beds, all within their price budget and within the town centre, which is where they wanted to be. One in particular looked a great option. In fact when taking legal and agency fees into account it could still have achieved a yield in excess of 8%, a great investment, on paper. Due to time restraints, myself and a colleague viewed the property on behalf of the landlord. What we found made me re-consider my initial advice and recommendations. The property only had rear access through an alleyway that did not present well. The surrounding area was also in need of attention and made the property look less desirable. Inside, the property had been fully refurbished and finished to a high standard. However upon closer inspection we could see signs of unexplained damp. I had to report back that the property would not necessarily be a good purchase and recommended that the landlord gave it a second consideration before making any offer. The lack of care to the surrounding area, which would be beyond landlord control, could put potential good tenants off, would affect the rental price and may have well lead to long void periods, all of which would affect the return on the investment. So the lesson of the story is, do your homework. Take a good detailed look at any property you may consider buying, look at the surrounding area; ask yourself ‘could I live here’. Always talk to your agent, as they should understand the market and be able to offer good advice. Alternatively you can talk to me for complimentary advice on 01793 487760. If you are starting to climb the ladder or are a few rungs up and wanting to grow your property portfolio. Contact Martin & Co today to book your free, honest, no obligation appraisal. Whether you are on the top or bottom step, Martin & Co can help maximise your investment opportunity. Martin & Co Swindon 108 Commercial Road, Swindon, Wiltshire SN1 5PL 01793 487760 swindon.martinco.com [email protected] 24 THE BUSINESS EXCHANGE 2015