Property Investment
The property market has always been a dream market for
investors. Be it is a long-term property investment, a BTL property investment
or even a student accommodation investment, it holds a good reputation for
bringing handsome ROI to the investors.
The latest figures from the government authorities tell us
that the country is facing a continual shortage of houses. The Wall Street
Journal reports that along the growth of the property market of the world, the
lending on real estate, both commercial and residential, has also made a
roaring comeback.
If you are a novice who dreams of making a fortune in the
property investment market or an established property investor, the following
tips will keep you safe from taking wrong property investment decisions.
1. Carry out proper market research
The basic step, before doing any kind of investment in any
sector, is that you should do your own research about the industry. The
property market has always shown ups and downs and the nature and volume of the
change fluctuate across the regions. Learn the current market trend and future
predictions, made by the authorities, as well as gather information about the
average market price of the properties in your targeted area. Conversing with
the people living around your property area will help you to understand the
current market price of the properties in that particular area. In order to
understand the pitfalls and the future market trends in the property market,
you can speak to people who have experience in the market and read journals and
reports from various experts and authorities that are available both online and
offline.
2. Plan your budget
You must be clear about your budget on your investment plan;
otherwise you might end up spending too much money than actually required or
even spending too less money that could have earned you more profit than
anticipated. This is really an important matter to keep in mind that property
investment is a long-term investment and you must make sure that you have
enough cash reserves to meet the contingencies. If your buy-to-let property is
lying vacant for a couple of months, paying the bills will seem impossible for
you unless you have proper fund reserves. Never over-invest as it will make all
your money tied up at one place when the market is down.
3. Choose the right location
Choosing the property in the right location is a very
important thing to remember while making an investment. When you target a
property for sale or a buy-to-let investment, it has to be properly located
considering its proximity to one's basic requirements, such as shops, hospitals,
schools etc. Buying a property within your accessible location will give you
more control and confidence over your investment. The 'location advantage' is
always directly related to the capital growth of the property.
4. Use estate agents for finding the right property
Seeking the help of estate agents, to find your property, is
never a bad thing if you are aware of the pitfalls very well. Being the
professionals in the sector, estate agents know your targeted area very well
and will be able to help you in finding the right property as per your
requirements.
5. Insure your property to avoid unforeseeable damages
You do not personally know your customers of your property,
so it is always better to insure it in order to avoid any disastrous damage. In
modern times, insurance can cover you anything, including full house insurance,
protection from different calamities, and insurance for the appliances inside
the house. You even have insurance option to the loss of your house rent!
6. Always negotiate for a profitable deal
There are too many players in the investment market due to
its global appeal. This fact always gives the buyer the advantage of
negotiation. The agents also would prefer to finish the deal as smoothly as
possible. Your agent can depict you fancy pictures of the advantages of buying
that particular property, don't fall for their words, instead, and make a move
based on your research and understanding; bargain for a fair deal.
7. Get social around the people of your kind
Always try to connect with people who are already in the
property business to get updates and the latest news about the property
industry. Things like, participating in online forums and groups of landlords
and joining various associations of property investors and landlords, increase
your insights and make you sure that you don't miss any leads and clues. The
National Landlords Association, National Association of Realtors etc. are some
of such associations and in each region you can easily find similar local
associations of investors.
Hence, before investing all your money in the properties,
make sure that you have completed all the aforementioned steps to build a
successful investment portfolio.
The article is intended to give insight into the precautions
to be taken by any investor in the UK's properties sector.
http://www.globalpropertyinvestors.co.uk/ is a leading property company in the
UK; they can help you in Property Investment for Sale, Buy to Let Investments,
Student and Oversees Investment Property etc.
Article Source:
https://EzineArticles.com/expert/Steve_S_Thompson/2146094
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