Top Tips For Successful Property Investments This Year
The last few years have seen an exceptionally fast-moving property market that breaks records and defies conventional wisdom every month.
After a third consecutive record high for properties coming to market, the blistering pace of house prices, transactions and the staggering rate of buyer demand can lead to potential windfalls for the investors and property investment company that takes fullest advantage of the current market.
In another year that defies our expectations, here are some top tips for making successful property investments, whether you are working with experts or going it alone.
Choose The Right Investment Area
Investing in a boom period where prices are on the increase requires some careful decision making to make the most out of an investment.
After all, if you are spending big in an area that is already very popular and saturated with investors, you may not make as much money back on your investment as you would expect, whilst a calculated investment in an area that is growing rapidly could pay off far more.
This means that research is critical; learn the areas you want to invest in, what buyers are looking for and the ceiling for how much they are willing to pay, taking advantage of the wisdom of estate agents and other property managers.
Sometimes, if you want to be very hands-on with the project, it is essential to choose an area that is regularly accessible to you.
Choose The Right Types Of Bargains
Property can be sold for lower than its expected market value for many reasons, but if you are planning on buying low to sell high, try to avoid pitfalls that could either increase your expenses or reduce the chances of making an effective return.
Structural issues are the biggest concern to avoid; if a potential bargain either at a property auction or on the open market does not pass scrutiny in an inspection, do not buy it expecting to be able to fix it cheaply.
Many investments fail because of unexpected structural issues that must be sorted at great expense, so ensure you factor in that possibility if you do take that risk.
Beyond structural problems, ensure that the expected return fits the market and anything you do to add value such as loft conversions, extensions and taking advantage of outdoor space fits the area and allows you to sell at the right price.
The ideal property for a first-time investor is one with fantastic potential that has no structural issues but may simply need some care, attention and design applied to help it live up to its potential and sell for a small profit.
The first projects are about developing a process and understanding what goes into property investment, and once you feel comfortable, you can start to take on more ambitious restorations.