There are several key factors to consider when investing in property. If you get these right, they can make the difference between success and failure, profit and loss.
A well managed property portfolio should deliver you 2 things; monthly cash-flow right now, and the potential for capital gain for the long term. Ideally, if you are savvy enough when sourcing your next investment property, it could also provide you with instant equity on completion, assuming you buy the property below its true market value.
Over the past 10 years, we have helped over 150 private landlords and investors do just that, and many of those clients are now enjoying the financial fruits of their investments.
We recommend you build a diverse property portfolio and do not ‘put all your eggs in one basket’, for example, do not buy two of the same type of property in the same location, just in case you struggle to find suitable tenants.
Here are a few tips to help you get started:
Invest in different parts of your chosen ‘hotspot’ or local town, or even in different towns and cities completely. Demand for certain types of properties and the price people are prepared to pay in rent, varies from town to town and city to city. Employment prospects, crime rates, air and/or noise pollution and access to transport networks are just some of the factors that can affect your decisions to buy.
2. PROPERTY TYPES:
Look at buying different types of property. Flats, apartments, terraced houses, semi-detached and detached, there is strong rental demand for them all. Don’t stick to buying properties with 1 or 2 bedrooms, buy some with 3 or 4 too. This strategy will also help you attract a wider range of tenants.
3. TYPES OF TENANTS:
Consider all types of tenants; young, old, working and not working. It is usually a good idea to consider ‘some pets’ depending on what they are and the type of property, and we would always recommend saying NO to smoking inside any of your properties.
If you’re interested in finding out more about building a well balanced property portfolio, please get in contact.
Our Senior Property Consultant Simon Holland will be more than happy to sit down and discuss your options with you, and we also have a strong network of mortgage and insurance advisors, as well as solicitors that we can recommend to assist you further.