Today – Golden Rules of Property Investment
If you are looking to invest in property, there is serious money to be made. Property remains one of the most popular investment strategies and it has several benefits along the way. When you decide to invest, there are several factors you need to consider, and these Golden Rules of Property Investment are worth keeping in mind before you make any decisions.
Golden Rules of Property Investment
Understand the Market
Being clued up on the market is essential if you are going to make the best investments possible. Knowing what factors affect the property market, doing your research, and understanding the market allows you to plan for the future and choose investments which will go up in value. A measured, analytical approach with as much information as possible will allow you to make the best investment choices. Make sure you’re properly educated about what makes a good deal in buy to let property investment. Also find out what steps you can take to improve the success of your venture. Look into different areas, compare different properties and find out about any plans that might impact your investment. Look at what is happening in the general UK property market and if there are any trends that you should be aware of. One example would be the drastic rise in UK city populations – more and more people are moving to the city, so investing in a great city centre location will be a smart investment for the future.
Always Look for The Best Rental Yields
Other factors like a great price, a brand-new opportunity or a sentimental connection can affect deciding which property to invest in. At the end of the day it is rental yields that really matter. Rental yields are a percentage which are calculated by dividing the annual rental income by the property price you paid. Always look for the highest rental yield possible, as it will allow you to pay off the investment quicker. A property with an annual rental income of £6,000 which cost £150,000 will have a rental yield of 4%. However, a property with an annual rental income of £4,200 that cost £60,000 has a far higher rental yield of 7%. The higher the rental yield, the more profitable the investment is. Certain areas and postcodes have better rental yields than others, so look for an investment property in a lucrative area.
Invest with the Experts
Another golden rule of property investment is to make the most of lucrative investment opportunities available to you. Property investment experts like RW Invest have a range of buy to let properties which have been specifically designed to provide the best opportunities for property investors. Often property investment specialists have access to lucrative opportunities before they are on the open market. This can sometimes also allow property investors to purchase off plan property below market value, which is another great strategy. Don’t be afraid to ask questions and build a relationship with your property investment advisor so you will be in line to hear about upcoming lucrative projects too.
I hope you have found this post on the Golden Rules of Property Investment to be useful.