If you are looking for a way to invest your money for the future, you’ve probably considered property investment. It remains one of the most popular ways of investing and it has several benefits along the way. When you decide to invest there are several factors you need to consider to find a great property investment.
Rental yields are one of the most important parts of any property investment. Rental yields tell you how much you will earn from your property every year and how quickly your investment will pay for itself. Rental yield is a percentage that is found by dividing the annual rental income by the amount you paid for the property. It is always worth looking for the highest rental yield possible, for example a property with an annual rental income of £6,000 that cost £150,000 will have a rental yield of 4%. Compare this with a property with an annual rental income of £4,200 that cost £60,000 which is a rental yield of 7%. Calculating rental yields is a great way to compare properties and find out which is the best source of income.
Look at the Market
In order to make the best property investment possible you need to do your research and understand the market. Taking a measured, analytical approach and making sure you have as much information as possible is a sure-fire way to make the best investment choices. Ask plenty of questions about the property and how well it will do as an investment. What type of tenants are looking for rental properties in that area? Where are property prices on the rise? What areas are worth avoiding? By understanding the market and knowing what is going on with local property you can make an informed decision based on your understanding.
Talk to the Experts
It is always worth getting an expert opinion when it comes to your property investment. Whether you talk to local estate agents, speak to people who are local to the area or find an investment specialist, it is worth getting a second opinion from someone who is in the know. Purchasing through a specialised property investment company like RW Invest is another great way to make sure you are making the most of your money. Often these have inside knowledge about the property market, as well as having access to developments before they are even built, so you can get the best units.
Look at the Logistics
Before making a property investment it is key that you know how it will work for you. Make sure you are aware of any costs that are involved, for example, stamp duty, landlord insurance, maintenance fees, ground rent and home improvements. All these things should figure into your calculations, enabling you to find whether the investment is worthwhile.
There is nothing wrong with seeing a couple of properties and making enquiries about several before you decide where is best for you to invest. Even if you find a property that seems perfect, it is worth keeping an eye out for other properties that may offer better rental yields or have more tenant demand. It’s easier than ever to get up to date property news and information online, so make sure you don’t miss out on a better deal because you have stopped looking.
Published by Charlesa Gibson