Where should I buy my second property to maximise profit?

seaside towns

Buying a second property is always a daunting prospect and especially when you intend to finance the venture with a commercial mortgage. After all, if things go wrong and you make a loss rather than a profit your original property could be under threat.
So where should you buy your second property to both ensure and maximise your profit? Let’s take a look:

University Cities

Buying a residential property in a popular university city is a sure fire way of making a profit, although you may not start to benefit financially for a few years. Students generally spend the first year of their course in university accommodation but following this they need private rental properties. There won’t ever be a shortage of students in large cities and if you make sure you have a quality contract and a clean, tidy property you are guaranteed a profit.
Locations to consider: London, Birmingham, Leeds, Cardiff, Manchester, Liverpool, Wolverhampton, Lincoln.

Seaside Towns

Contrary to popular belief, people still love holidaying in the UK so buying a nice, spacious property suitable for use as a holiday let, again guarantees a profit. Buying a slightly rundown property and renovating it is a great way to get a bargain. You will need to put some time and effort into the decoration though so you may not see an immediate financial gain. Alternatively, a property bought and renovated and resold will also bring a profit, so this route is also worth considering.
Locations to consider: Skegness, Weston-Super-Mare, Aberystwyth, Anglesey, Mablethorpe, Weymouth, Barry Island.

New Towns

Small towns that spring up on the outskirts of major cities are always popular with commuters who prefer a quiet life. If you can find a growing town that is on the verge of becoming popular you can often find cheap properties with a lot of potential for profit. Whether you decide to rent the property out or resell it when demand is higher, you’ll still be sure of a financial gain. Research the upcoming areas around the major cities to compare prices and demand.
Locations to consider: Cambourne, Ebbsfleet, Wixams.

Overseas Locations

Popular overseas tourist destinations can also be big profit-making purchases. For example, old chateaus in Southern France can be bought for the equivalent of £50-60,000 but rented out for in excess of £1000 per week during the peak summer months. It may take several years to see a profit but once you do you’ll have a steady income for life.
Locations to consider: France, Italy, Cyprus, Spain, Greece, Turkey, America.

Wherever you decide to buy your second property you’ll see a larger profit if you get the right mortgage. Using the services of a commercial mortgage broker is essential if you intend to go down this route in terms of finance. A good commercial mortgage broker will be able to find the best deals available while keeping fees low, and as they do all the work for you you’re guaranteed a hassle-free purchase.

Author Bio: The brokers at Pure Commercial Finance are experts in securing the best commercial mortgage deals for their clients. Get in contact today to discuss your second property options.

Image source: Wikipedia.

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  • http://www.kiplettings.com Kip Lettings

    Definitely agree with the locations, I would also add that you should research the area before buying anything and ensure that the property can represent a decent yield.