Property investment can be very financially rewarding but those who seek success are sensible to step carefully when investing. It is not simply the case that an investor can buy any type of property in any location and see a positive return on their investment.
In this article, previously shared in Sports World Magazine, we highlight the common mistakes investors might make and how to avoid these.
Why Property Investment?
If you’re planning for the future or exploring ways to supplement income outside of your main profession, it’s likely that you’ve considered investing in property. Of all the asset classes, property investment can deliver exceptional returns due to rising prices and strong rental demand.
The beauty of buy-to-let property investment is that an investor gains two forms of income; the first is the regular rental income from tenants each month that will cover any expenses and provide a monthly return and, in the background, the second form of income is the long-term capital appreciation as the property increases in value.
Furthermore, property is proven to be resilient in the face of economic or political uncertainty and is recognised to be one of the safest and most secure investment options.
What to Look for in an Investment Property
The key to success when investing is to secure the right property in the right location, for the right price. Whilst you can analyse these factors separately, it is the combination that will ensure an investor achieves the greatest financial return.
It can be incredibly risky to invest without knowing very much about an area and the local property market. No one has a crystal ball but looking at what property prices in an area have done over the past 5-10 years and the predictions for the future.
Thirlmere Deacon ensures their clients can make well-informed decisions by diving deeper, considering the condition of the local economy and population trends, for example.
Common Mistakes to Avoid When Investing
There are several common mistakes to avoid when investing in property, and overseas investors buying in the UK have additional mistakes to be aware of, the below are some of the most common mistakes made.
The Wrong Location
Buying in the wrong location is a common mistake investors can make. Yes, an ‘up and coming’ area might seem perfect and have the potential to see huge price rises but check its credentials – is it well connected with public transport? Are there any shops or places of work nearby? Just because a development is attractive and modern, or has facilities such as a swimming pool, does not immediately mean it will appeal to tenants or that its value will rise.
The Wrong Property
Off-plan property investment has many merits; it is proven to deliver price growth that older properties simply cannot compete with. One of the most important factors to consider when investing off plan is the developer who will be constructing the property – check their track record and look at buildings they’ve completed to be sure of their credentials. Thirlmere Deacon works only with certain trusted developers and carefully vets each development prior to proposing any investment. Whilst off plan property investment can be incredibly lucrative, it’s important to step carefully – not all developments offer the same opportunity.
Another common mistake is procrastination, investors often wait too long to get started and miss out, as by the time they take the first step the market has moved on. That’s not to say you should take knee-jerk action, planning is paramount.
Get Advice from the Experts
An experienced property investment consultant can provide valuable guidance when choosing a buy-to-let property.
Tailoring our approach to each individual and their ambitions, we offer advice on where and what to invest in.
With a large network of industry contacts and by conducting a thorough vetting process on opportunities, investors can rest assured they are in the best position to secure a robust asset that will deliver strong returns.