Buying investment properties – Probate properties

Probate properties will always be a good option for investment properties, both in the sale and rental markets. They are often in desirable locations, particularly for the rental market, and they can often be bought at somewhat of a discount. There is also no chain involved in the process, which can speed the sale up.

The buying process for probate properties

Probate properties may be sold by the family of the owner or by a legal firm on behalf of the owner. This can impact how they are marketed or sold. For example, they are often for sale through auction or in need or a quick sale, which can provide an opportunity for a buyers’ market. However, buying at auction requires buyers to have funds secured and in place before making a purchase. This is not a problem for investment buyers who can access cash easily, but this may be a limiting factor for some buyers.

Although probate properties won’t have a sale chain, they may have delays in the sale process if probate is contested. If probate is not granted quickly and there is a contestation on the will, then the sale can be held up for months or even halted completely.

Probate properties need investment

A significant downside of buying a probate property is that they will often require renovation. In some cases, this may just be a lick of paint, but in other cases it can involve a more extensive renovation project. Often these properties haven’t been updated for many years and will appear dated, but don’t let that put you off. They will normally have good bones and the price will reflect the need for renovation, allowing you to pick up a bargain and create the ideal investment property for your portfolio. With many of these properties, the work required is predominantly superficial, such as repainting and new carpets.

If you are looking at a probate property and trying to consider where to spend the money on redecorating, think first about what you can save. If there is an older kitchen that is still very solid, you may be able to retain the carcass. Simply replace the cupboard fronts/doors or even repaint them to give the whole space a facelift for a fraction of the cost of a new kitchen.

When deciding what you do with your rental property, consider smart spending. Bathrooms can easily be revamped with a good clean, some new flooring, and fresh sealant around the sink and bath, etc. Choosing a neutral colour like white – please no magnolia – for the majority of the property saves on paint costs, and adding some colour with one feature wall in a nicer paint can really make a room pop for very low investment.

But our top tip is to always ensure you have all the systems in the property checked by a professional before deciding on where to spend the money. Make sure the electrics and plumbing are up to scratch before you go choosing colour charts.

Why do probate properties make such good investment properties

Probate properties tend to be located in desirable areas with a good community of other homes, often with easy access and local amenities. They are also often bungalows. This fact alone makes probate properties particularly sort after as rental investment properties.

Bungalows are a fantastic investment property option for various reasons. They have great accessibility, allowing you to appeal to a full range of potential tenants, from older couples to young families and everything in between.

It is not uncommon for probate properties to be of the ideal rental property size- 2–3 bedrooms – and they frequently have parking and some outdoor space. These are all huge selling points. The holy grail of rental properties is 2–3 bed home with a garden and parking, and as these don’t come up often there is always huge interest. Probate properties, and in particular bungalows, tend to fit these criteria perfectly, which is why they are such a good investment if you can get them at the right price.

If you are looking to purchase an investment property, whether you are growing your portfolio or starting from scratch, we would always recommend speaking to a local letting agent about the rental market in the area. There can be a significant difference in rental values, even between streets within the same town, and a local letting agent will be able to advise you on the best way to invest for the right return.

At Bright Star Lettings, we are always happy to support our clients with new investment property purchases, from discussing rental values to viewing properties. Contact us today to find out how we can help you.