Property investment is a lucrative and profitable field with a wide range of opportunities. From renovated city apartments to terraced houses in the suburbs, to new build student accommodation, there’s plenty to choose from. If you’re thinking about getting into property investment, you may be slightly overwhelmed at all the options, so we’ve put together some ideas to help you find your perfect property investment.
Type of Property
Many first-time property investors have a certain idea in their head about what kind of property they’d like to own. Though it’s important to choose something you love, it’s also vital to do your research and look at the market. If you have your heart set on a beautiful high-end property in a location where there is little demand for luxury accommodation you may struggle to find tenants. Investment is all about being smart and making the most of your money so consider different types of property while you’re looking.
Student property can be a great investment, with a huge demand and high yields, but it’s often forgotten about. If you have a large sum to invest it could be worth investing in a few types of property, for example, a student flat in Liverpool, a luxury apartment in Manchester and a small studio in London. If you like modern, high end finishes a new build property might be best for you, and if you like older properties, have a look at renovated factories and warehouses for quirky, unique properties.
Level of Involvement
To find the best investment for you, you need to think about how involved you’d like to be. For some people, a hands-on approach is preferred and for these investors, a renovation project might be best. If you’re a fan of DIY and you want to get your hands dirty check out local auctions and find a property you can totally transform. For those who want a more hands-off approach, working with an expert property investment firm like RW Invest is the best way to move forward.
They can advise you on the best new opportunities and how to move forward with your investment portfolio. Often when buying with a buy-to-let specialist they can find tenants and allow you to invest with minimal involvement. If you want to invest from afar, make sure you have a great property management company in place, and that you’ve budgeted for fees that may apply to your property investment.
Your budget is a major factor in finding your perfect property investment. There are investment properties for all kinds of budgets, from small student flats to large penthouses and family homes. Work out how much you can afford and look at the rental rates of similar properties to find out if you’ll make your money back quickly. Area also plays a massive role in your budget, certain places like London have extremely high property prices which aren’t accessible for everyone. Further north property prices are cheaper, with city centres in the northern powerhouse providing affordable investment opportunities. It’s essential that you budget properly, no matter where you invest, and that you choose a property that is affordable for you. Make sure that you look at the rental yield, and aim for at least 7%.
Like any investment, the point of an investment property is to increase in value over time. To get the best property investment for you, it’s important you know how much it could be worth in the future. Have a look at previous house prices in the area, what the general trends are and whether the area is growing or in decline. Choosing an area where there is lots of investment and regeneration is a wise move as property values should start to rise.