We’ve all seen those TV programmes where residential properties are almost instantly transformed from not so nice to high-spec showhome, netting the owners a tidy profit in the process. But property investment isn’t as easy as it seems: investing requires considerable research together with a sensible and well-thought-out strategy that will help you make the most of your money. If you’re thinking about investing in property, here are 4 easy ways to get started.
Start saving in advance
In order to buy property, you’ll need a substantial amount of cash to raise the deposit and for that, you’ll need to start saving. So why not make a start on those small but unnecessary expenses. Why pay £500 for a gym if you don’t even use it – there are plenty of free online hit exercises you can complete in 15-20 minutes? Why pay for cable TV when you’re only using Netflix? You can make coffee at home instead of buying your morning coffee from the station café and you can save the planet at the same time by taking it with you in a reusable cup. If you manage to keep aside just £10 every day, you’ll have £3,650 saved in just a year! That might sound like a trivial amount when you’re talking tens of thousands for a deposit, but it’s a start.
Never put all your eggs in one basket
In any financial situation, it’s wise to spread your investment, and that’s especially true when it comes to property. Rather than buying one expensive house in the most exclusive area, it might be better to invest in several apartments in different locations. Then, if one investment tanks, you will at least have others to help you recover your losses. Just because an upcoming development is predicted to do well, doesn’t mean that you should buy two properties there unless you can agree on a great discount for buying two of course.
Location, location, location
Professionals, students and workers from overseas arriving to make their homes in Britain generally prefer to rent an apartment rather than a whole house. With that in mind, you will benefit from investing in apartments that are either near universities or in commercial areas, where the demand for rental accommodation is high. Transport too is always important as a tenant will want easy access to town centres. A buy-to-let apartment will provide a fixed income, which is better than buying a house in an up and coming area in the hope that its value will accumulate (remember, the longer a property remains on the market, the less likely it is to sell at the price you’re looking for).
Don’t stop asking questions
When you’ve narrowed down a particular location that interests you, you can start to dig down into the detail. How much are the property prices in this area expected to rise in the coming years and is there any new transport links that will help boost that value further? What is the average rent in the area? Ask trusted Central London Estate Agents what level of rent you could expect for a property in your chosen location and follow their advice regarding the kind of accommodation tenants are looking for. Is there a garden or outdoor space? Research shows that properties with a garden space or even a small patio/terrace can fetch as much as 20 per cent more than the other properties in the same area. Will the property work as a house-share? Most working professionals and students will prefer to split the rent by sharing with others, rather than live alone.
The more questions you ask about your potential investment, the more you will factor out any hidden risks or pitfalls. When buying an investment property, it’s important not to let your heart rule your head, so carry out careful research, analyse the results and don’t sign up until you are certain you’ve made the right choice. Award-winning central London estate agent Hudsons Property is ideally placed to offer advice and guidance on the best property investments in London, so why not give their sales team a call?