22 Mar Property Investment: Top 5 Tips
Identify future hot spots
Estate agents and property developers are always keen to identify the next “hot spot” that will buck market trends and report double-digit growth in property investment.
Quite right too. In London, Knight Frank has identified Nine Elms in Battersea, Earls Court and Paddington as ripe for big price rises; thanks to development plans. We think Cross- Rail should be a monster too.
Keep an eye on transport and regeneration plans as well as any employment initiatives, as these can boost house prices.
Stick to the basics
Whether you are looking for income from a rental property, property investment or a place to live offering the hope of capital gains, don’t forget the basics, such as location, transport links and proximity to good schools, shops and so on. Period properties tend to hold their value better than new builds. It also found that in recent years properties in towns have held their value better than those in villages. Regardless of where you buy, it is typically prime property that holds its value better in market downturns.
Instruct Just Us Property
Anyone can buy a property and call it ‘property investment’. That will not make it a great one. Through our experience of 18 years dealing with clients and their finances, and MRICS qualified partners we know what makes a good property investment and what makes a dud. Furthermore, we will source great opportunities for you through Just Us property that you cannot find elsewhere and help you purchase them with the maximum of ease.
Factor in the downside
Being a buy-to-let landlord is not a license to print money. Although some people, like this author, think it is. At the moment rental yields are very strong, thanks to demand outstripping supply in many urban areas. However, this situation could calm down if more people buy property to let out and credit conditions relax, making it easier for first-time buyers to get mortgages. (This would mean rising property values)
Look at property investment funds
You don’t need to own bricks and mortar outright to invest in property. There are a number of property funds, although the majority invest in commercial (offices and shops) rather than residential property. However, a number now also invest in residential homes.
However the true uplift and attraction of property comes through leverage and that lies in buying your own property and borrowing against it.
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