What to look for when buying an investment property

As we move through the year its important that investors looking to purchase a property know what to look for. Whilst a property can look the part its crucial that it's a successful investment and doesn't burn a hole in your pocket.

In this article, we will cover three simple points to look at when purchasing a property to give you the best outcome.

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‍How efficient is it (EPC)?

A property being efficient isn't just about the environment; it's also about how it impacts your income. EPC ratings (Energy Performance Certificate) are in place to rate a property's energy efficiency.

New laws have recently been put into place by the government, where all private rented properties must reach at least an EPC rating of C by 2030. If not met, owners can be fined under new legislation (NRLA, 2026).

When searching for a property its important to look at the EPC rating as anything below a C will now become less desirable and harder to let out. Buying off-plan is an easy way to guarantee an “A” or “B” rating, which will attract better tenants and improve your rental income.

Energy-efficient homes with a rating of A or B are also eligible for “Green Mortgages”, which offer lower interest rates or cashback as a reward for lower utility bills and environmental impact (Natwest, 2026).

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Check the cash flow

The whole point of buying an investment property is to gain the maximum possible return available. The yield is the amount of rent you receive as a percentage of the property's value. 

Whilst property prices going up is a bonus, a healthy cash flow (money coming in and out) is what will keep your investment safe. 

‍When looking its important to figure out what's best available to your budget and to try and determine the best potential outcome.

A good yield in major investment hotspots such as Manchester and Liverpool is currently sitting around 6-8%, which is what you should target. When looking, don't just look at the price; think about what will be left after bills and management fees.

If the calculations don't leave you with a monthly profit, then move on and find something more suitable; there is no benefit in stretching yourself and breaking even or losing money.

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Where is the property located?

The location of your property can have a drastic impact on your returns, and strategically picking the right place based on available information is something all potential investors should examine.

Things to consider when looking at a location is to go where money is already being spent. If the government is investing in a certain area, it usually results in a positive impact on surrounding areas, whether that's rents going up or house prices climbing.

Another big determiner is looking at its closeness to transport links, as properties near train stations, tram stops, etc., usually come with a premium.

For example, young professionals needing to commute will value access to transport very highly compared to other factors when looking for somewhere to live, making your property more desirable and reducing void periods.

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Final thoughts

Although it may seem simple, it's important to consider these factors when purchasing an investment property, wether your beginning your journey or you are a seasoned professional. 

Picking the right investment choice for you is crucial to having a successful portfolio and gaining the best returns available.

‍If you would like to purchase some of the best properties available on the market today, contact us, where one of our dedicated investment advisors will guide you through the process.