When you are looking for property investment tips, there are a few things we think you should consider. Here’s an overview of some important considerations but we always recommend you speak to a property investment specialist before you commit to a significant investment as no investment of any sort is totally risk free.
1. Know your market
First of all do some research of the property market you are looking at. The most expensive or the cheapest areas aren’t always the best or worst places to invest. Often local factors such as proximity to an active University will make an area a good one to consider. You need to think if you are investing for capital growth or for rental income as your primary driver, or perhaps a combination of the two.
2. Consider your investment goals
Most people are aware that with historically low interest rates traditional savings investments are not currently giving very strong returns, this is one of the reasons property investment is seen as an attractive alternative. We achieve returns of around 13% (rental and capital growth) which is better than most alternative investment options and the risk is less as you own the property itself and can sell this at when you wish.
3. Get the right tenants
If you invest to secure a rental income you need to ensure the property is occupied or you will have the costs of ownership without the income to offset those costs. Different areas have different rental customers and for example, Mistoria target student tenants and secure up to 100% occupancy across our portfolio each academic year.
4. Choose the right property
Consider the types of property available and whether it will be an asset that is likely to sell easily when you are ready to move on from your investment. Houses that are in keeping with the area are likely to move relatively easily whereas unusual or specialist properties will most likely have a smaller resale market and might be hard to sell.
5. Consider management of the property
Every property, large or small will need management, whether it is keeping on top of maintenance issues or ensuring the bins are being collected properly there are always things to do. If you live locally and have the time and skills you may wish to manage the property yourself. However for most investors this is the last thing they wish to be involved with. A professional property management company will do all of this for you and will look after the sourcing of tenants as well as collecting income and sorting out maintenance issues. In this way it becomes a true “armchair” investment.
This is by no means an exhaustive guide but some sensible property investment tips for you to think about. We would be happy to discuss your plans in more detail and to show you our range of investment opportunities. Please call us and we can arrange an appointment.
