Investing in an apartment can be a smart financial decision without worrying about the general upkeep. Looking to invest in the UK real estate market? Well even after the challenges of Brexit and the Covid-19 pandemic, the UK property market entered 2021 with a degree of optimism. Despite the strains of lockdown, the property market continues to rise across the country. Apartment ownership can also be an advantage for having amenities and having professional management to take care of building maintenance. You should always look up for all the information that you can get. For instance if you are investing in an apartment in Montreal, you can check the listing to find your ideal property.
Well, there are several factors that can influence the apartment market that is extremely volatile and unpredictable depending on the region and legal laws governing the area. However, we have highlighted some guidelines you need to be aware of before investing in an apartment.
CONTACTING AN ESTATE AGENT WITH EXPERIENCE IN Apartment DEALINGS
Some estate agents specialise in a certain type of housing like apartments, single home, luxury homes, or rental houses. Finding an estate agent with a track record in apartments is essential, they can address any concerns you might have and guide you through crucial steps that can be very helpful in saving you time and money. Also, estate agents have a network of contacts and have in-depth knowledge about the area.
FINDING THE RIGHT LOCATION FOR YOUR INVESTMENT
Like any real estate, location is supremely important. For new buyers, the location you buy into will heavily influence your future resale value as well as the current value. Depending upon your lifestyle you can scan the market from booming city neighbourhoods to countryside apartments. In the UK after the steady decline of London, regional cities such as Liverpool and Manchester have become ideal locations because of regeneration in and around the city, with many more projects set to take place adding to the growth and transformation of these popular locations.
You must examine your current state of financial savings and potential future income before investing. Investing in real estate involves a huge amount of savings and income stability. Also, it is smart to take into account the cost of maintenance along with the state taxes involved with housing (ask your realtor about it). However, investment yields have seen a positive return on average, house prices have risen 1.2% since October 2020.
CAREFULLY EXAMINE ALL HOME-OWNERS ASSOCIATION (HOA) TERMS AND CONDITIONS
Unlike regular homes, an apartment has shared areas like lobbies, gyms, swimming pools, parks everything except the area inside your wall. All the external maintenance falls under a Housing association. Now once you buy into an apartment there are certain legal guidelines you accept that are known as covenants, conditions and restrictions (CC&Rs). One thing to note here is the fees collected for maintenance along with any additional fee. You should be able to know who is in charge of the day to day maintenance, and the rate of response to a problem.
GENERAL THINGS TO AVOID
While a modern apartment comes with its own bundle of blessings. There are a few things that you should avoid or they are signs of bad investments, like:
- Bad layout of the house: This is hard to change once you have brought it and it will probably cost a lot more to change it. The layout of the building exits also plays an important role during an emergency.
- Shady neighbourhood: Nobody wants to live in a bad neighbourhood. Security is paramount for all families. One advice for neighbourhood scanning: research the area carefully about the crime rates and safety levels with the authorities.
- Dodgy builders: Whether you are investing in a pre-constructed or already constructed apartment; check the builder’s review with former clients. There are many cases where the buildings constructed are not safe for little kids and the materials used in constructions are below average quality.
BENEFITS OF INVESTING IN UK
- Positive Growth in House Prices
The demand for real estate in the UK has always seen an upward trajectory from the past. That is why it is considered as a safe investment by investors all around the world. Even after the pandemic lockdown most of the cities in the UK like Liverpool, Manchester, Leeds, Sheffield, Nottingham, Birmingham, Newcastle, Edinburgh, Cardiff, Leicester, Glasgow and Oxford are expected to see a regional 5-year house price growth of about 20% according to RW investment.
- UK Undersupply Drives Demand
The major driver in the UK rental market right now is residential undersupply. While this could be considered a challenge for renters, for people looking to invest in UK property it represents a prime opportunity to build solid returns and find incredible value.
- High Rental Yields
One of the driving forces in investing in an apartment is for renting it out for a stable income. While initial investments in the UK can be challenging still with the increase in house price value and high rental returns can be proved to be a golden investment. With each of the top-performing cities being home to several popular universities and young demographics, rental yields will only keep on increasing.
We have given you some guidelines about investing in an apartment and the benefits of investing in the UK. Follow-up on these and do your own diligent research and it will result in a smart investment for you and your loved ones.
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