102 Stage Three: Procurement able to find out what people think about the local housing supply and the amount of private rented accommodation in the area. This is useful if you are intending to let your property. Also, make contact with local landlords, who will be able to offer information and advice about letting in the area. When viewing the neighbourhood, take note of the following: 1 The property boundaries: consider access, right of way, the state of adjoining properties and gardens. Look for sections of the boundary that may pose a risk to security or may be a magnet for graffiti or vandalism. This is important if you are intending to spend a long time renovating a property, as empty properties attract vandals and fly-tipping. I The standard of roads and pavements, :he level of street lighting, speed limits, traffic-calming measures, residential parking schemes. If a parking scheme is in place, speak to local residents about the cost, how well it works and what people think about the scheme. I The amount and type of derelict land and empty properties in the vicinity Could they attract vermin, gangs of youths, drug addicts, squatters or drunkards, all of which will put off potential buyers? 1 The availability, type and standard of local schools, youth clubs, social facilities, health services and leisure and enter- tainment facilities. Think about your target market and make sure the facilities match this market. 1 Look for signs of local community involverrent, such as neigh- bourhood watch schemes and local campaigns. If you are intending toaim your property at the family market, this type of community structure can be appealing and a good selling point. 1 Look for evidence of environmental campaigns and greener ways of living in the neighbourhood. What local authority waste and recycling schemes are available? Are local organiza- tions, schools and community groups getting involved in environmental projects? Are there local suppliers of envi- ronmentally friendly products, materials and services? Is thereResearching the Neighbourhood 103 a local organic vegetable box scheme available? This type of living is becoming increasingly popular and could help to attract potential tenants and purchasers to your property. Summary Once you have found a property in which you are interested, you need to carry out some neighbourhood research to find out whether it is the type of place in which potential tenants/buyers would like to live. This involves an analysis of neighbourhood statistics, personal observation and discussions with people who live in the area. If you are happy with the results of your neighbourhood research you can think about the next step of your project: buying, the property. The steps involved in this process are discussed in the next chapter.104 Buying a property Once yau believe you have found the right property in the right location, you need to find out whether it is being offered for the right price. Ifitis, you can begin the buying process. When buying a property you need to research local prices to find out whether you are obtaining a good deal. This involves a consideration of past, present and future pricesin the vicinity and an understanding of the costs involved. You also need tobe able to negotiate and bargain, knowing when to makean offer and when to walk away. This is the case whether buying privately, through an estate agent or at auction. This chapter offers advice about these issues. Knowing whether the price is right How do you know that the property you have found represents good value for money? If you know the area well and have been keeping abreast of fluctuations in the local market, you will have a good idea about general house prices in the area, Also, if you have taken notice of the advice offered in Chapter 6, you will have conducted an effective price analysis that enables you to get a feel for when a price is right. In addition to this research find out about the prices of prop- erties similar to that in which you are interested. Look at similar properties in different states of repair in the vicinity. What is the selling price when they are ‘in need of modernization’? Whatis the selling price when they have been renovated and modernized? The best way to obtain this information is to contact local estate agents and view some properties in different states of repair. Leave your details with several local estate agents and ask them ta contact you as soon as this type of property appears on the market.Buying a Property 105 Visit each property and take notes. This will help you to plan your own development when you have bought the property. Note the asking price and find out how long the property has been on the market. How quickly does the estate agent expect it to sell? How quickly are similar properties selling? Keep an eye on the different properties, and when they are sold attempt to find out for how much, although some estate agents will be reluctant to offer this information. Consult some of the websites mentioned in Chapter 6 to find out how prices have changed over the past few years. This will help you to predict how they might change in the future. Currently house prices are falling in many areas, so it is important to monitor these changes in price so that you know when to make an offer. Also, many property owners are becoming jittery about the property market and may be willing to accept a much lower offer on a property if you can prove that you can move quickly on the sale. This is also the case for properties that have been repos- sessed — lenders want to dispose of the property quickly and, although they are under a duty of care to obtain the best possible price, they also need to move quickly to recoup their loan. If you are able to build up a trusting relationship with local estate agents you can convince them to let you know about repossessions and other bargain properties as soon as they appear on the market, which will help you to beat the competition from other buyers and developers. Negotiating and bargaining Successful property developers know how to negotiate and bargain. They will very rarely offer the asking price and will be prepared to move on to another property if the vendor is unwilling to negotiate. Make sure that you do not become so attached to a property that you must have it at all costs. This does not make financial sense and is not good for your property business. If the price is not right, move on to another property. ‘Once you have found a property in which you are interested, decide on the lowest amount you want to offer and the highest price you are willing to pay. Do not be tempted or persuaded to