Property investing is a great way to make a return on your investment far and above what you’ll get in the bank. However, with signs of the market slowing it’s no longer possible to just assume you’ll make a profit. You need to think more carefully about your investment and put some thought into where and how you are going to invest.
With that in mind, here are five top tips for how to successfully invest in the current market.
Know your potential market
In most places you need to think about who is going to rent your property. With an abundance of rental properties in a saturated market, you are not guaranteed tenants, let alone good ones. Think about who the property will appeal to, with outside factors such as proximity to schools, transport and the like.
Don’t count on price rises
Over the last eight years prices have steadily gone up but there are signs the market is slowing, Combined with the uncertainty of Brexit, this means you cannot guarantee a return on your capital investment when you sell. Instead, you should be thinking about returns coming through rental value and long term gain.
Add value in other ways
You can maximise yields by renovating, extending and refurbishing. This may involve some expenditure in the short term (or even a hefty amount of hard work if you do it yourself) but it’s a good way to boost rental income and add value to the property.
Never scrimp on checks
It can be an additional cost to go through all the relevant tenant checks but this could save you big money in the long term. Problem tenants can be a nightmare, difficult to remove and can cost thousands in damages and legal fees. A few pounds spent on doing your homework can help you avoid all this trouble.
Always get insurance
Similar to the last point but always worth repeating as it is important. Good insurance protects you against the worst happening, and it does occasionally happen. If you’re not insured then you risk facing thousands of pounds of repair bills or worse.
Investing in property is never a guarantee of a good return but if you are cautious and follow good advice, your chances of success are significantly improved.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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