Property investing in Penicuik .... my 5 golden rules

As a landlord myself, I thought I would share some of my rules/tips on finding the right investment property for you in Penicuik and its surrounding areas.

Rule 1 -  location  

My number 1 rule is invest in a town you know. What better town to invest in than the town you grew up in? Now you will know which areas are high in renters and which areas are high in home owners. You will know where the schools are, local shops and importantly the transport links.

Think about the sort of tenant you want to attract – if you are looking for professional tenants then you will need to look at properties which are close to the centre of town. The properties you tend to get close to the town centre are flats or one/two bed houses.

If you are looking to attract families then you may want to look at property that’s away from the town centre with noise and traffic etc and find somewhere which is close to shops, schools and parks.  Penicuik offers plenty of areas suitable for both, you have areas such as Valleyfield, Rullion Road and Mauricewood to name a few and these locations are all great for rentals both families and professionals as the centre of town is not too far away but far enough from all the hustle and bustle.

Rule 2 - motivated sellers

I’m not sure what you think of when you hear motivated seller but what pops into my mind is someone who will take a very low price for a quick sale. When I say low, I mean anywhere between 10%-30% below market value.  Finding these motivated sellers is not easy, you can start by looking at how long a property has been on the market. Usually November seems to be a good time to negotiate the price down on a property as people want to be out and in their new home for Christmas. Another motivated seller is often someone who has inherited the property.

Rule 3 – the figures  

So we have established the sort of tenant you want, you now have the location and a list of motivated sellers. Now you need to make sure all this stacks up financially. At the end of the day you are in this to make money rather than breaking even or being in a loss.

Make sure you do plenty of research on the sorts of rents your potential investment property can achieve – my advice is to give my team a call and pick our brains. We are local to Penicuik and we are landlords. My team and I will be able to give you accurate numbers of the rents you can achieve in and around Penicuik. 

You will also need to set a buffer aside for unexpected expenses, usually this is general maintenance but we have had the odd boiler needing replacing which requires forward thinking. From my experience with my own properties and properties I manage, these often occur when you are undertaking works. Often other issues arise which need sorting out and this will always add more time to the job and it usually means you will go over budget.  But if you do it correctly then you will have a sound solid investment.

Rule 4 – Not a get rich quick

The Penicuik property market has gone down and up in the last 10 years and it’s very difficult to predict what the changes will be and if the prices will change.  As a landlord in Penicuik, think about the long goal. Use this as a plan for the future and the short term ups and downs will not affect you as much.

Rule 5 – Understand your market. 

This is similar to Rule 1 (location) however you can never do to much research, ring other landlords from Penicuik, speak to several local agents. The independent agents can make instant decisions there and then as the owner of the business tends to be close by (you will always find me in the office). They are more likely to sit down and give you their time, even if it means they get no business from it they just love to talk all things property.

There you have it, my 5 top tips to investing in Penicuik. If you are a seasoned landlord or you are just looking to start my team and I are always happy to chat about your goals and plans. We can point you in the right direction and even  accompany you on viewings so you have a second opinion.

If you find yourself passing our office then pop in (the kettle is always boiling). We have plenty of free parking available and I’ll even get the ‘posh’ biscuits out.

Our office address is based at 6 Bank Street, Penicuik, EH26 9BG. Many of my blog readers also email me with RightMove , Zoopla or On The Market links to look at and offer a second opinion so if that’s more convenient my email address is news@thekeyplace.co.uk.

Don't forget to visit The Penicuik Property Blog (www.thepenicuikpropertyblog.co.uk) to view back dated articles about the Penicuik property market as well as property deals in Penicuik.

www.thekeyplace.co.uk

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