Refreshing success

Forget the doom and gloom; this is one of the best property market opportunities for years. It’s a buyer’s market. Interest rates are low and likely to remain so for a while. Yet the slowing down in the housing market as a result of a lack of first time buyer finance is providing a rental boom. Rents are rising across the UK (particularly in city centres), yet property prices are negotiable and finance is available if you have some equity.

So what should you be looking for? In this market your success will be a function of the research you put in. There really is no point buying a boutique style office space if that local area is dominated by manual labour companies. Common sense  should always apply.

In a very strong market you can buy anything and it will let. Even though rents are rising you need to position a property well. Ensure that aspects which turn on lessees are all in order. A quality kitchen will always go down well in an office environment. Furthermore, outside space is a definite tick in the box, even if it’s a balcony or small garden. Every little aspect of the site can have an impact on the rent.

Decoration is very important. Magnolia as a “colour” is out. Seen it. Done it. Bored by it. Use a selection of paints to provide an interesting palate which acts as a blank canvass. I have just gone through the process and let one block of offices in 3 days and another in a week. Why? The colour plan is sophisticated yet fresh. A darker shade for woodwork, lighter for walls and perhaps lighter still for the ceilings. Think sticks, stones and pebbles as a palate to work from. Similarly with lighting, too much light is better than too little. Avoid low energy bulbs, they make tenants feel like they are back at university. Talking of such things if you must have a pendant light fitting, make sure you put a stylish shade on it. Tenants are put off by hideous design, being compromised through cheap fixtures or botched building works.

The other thing to consider is wiring. It’s something you don’t see in a building but a site which is wired sensibly with plug sockets in the right place and telephone points that consider that nearly everyone will have a computer these days. It’s a real plus point. When you inspect a property put yourself in the position of a tenant. Where should a TV go? Are meeting rooms fully stocked with the right connections? What about each employee’s computer space and how would you use it? Then plan accordingly and put the right sockets in discreet locations (using a uniform fitting throughout if you can) and again you add to the appeal. Give tenants a reason to let your site as opposed to one down the road and guess what? They most definitely will.

Most critical are the numbers. Evaluate your financial arrangements and budget accordingly. Things will go wrong during the tenancy so ensure that every pound isn’t gobbled up by interest payments. No matter how lovely your property there will be void periods. Keep four months spare cash in the kitty just in case things go wrong. Ensure you have budgeted for a rise in interest rates and don’t forget to take tax planning advice. And finally? Don’t cut corners. Ensure you are correctly insured with an appropriate policy that is designed for landlords. It might cost a little more but should you have to claim. You will thank me!

Finally. Stop worrying. The UK property market is resilient. With everyone saying how terrible everything is and worrying about the state of the market, unbelievably for the second time in two years, you have a golden opportunity. As long as you budget correctly, buy wisely and decorate with style, in five years time you will be over the moon that you actually went for it.