Five top tips for property investors in 2017
As the New Year draws closer we share our top tips for successful property investment in 2017.
Tip 1 - Have a clear strategy.
Having a clear and concise strategy is an important part of successful property investment. It’s important to know what you want to achieve so you can focus on investment opportunities which will deliver on your requirements. If you intend to sell up after 10 years, you’ll want to look at property investments which can offer adequate capital appreciation within that time. If you’re more concerned with ongoing returns you’ll probably want to focus on investments which provide the best rental yields.
Having a clear strategy in mind will ensure that you find an investment which meets your requirements as closely as possible.
Tip 2 - Get the right guidance.
This is even more important if you are new to property investment, or considering investing in an unfamiliar market.
Working with experienced, knowledgeable and (most importantly) trustworthy agents will ensure that you are offered the best investment opportunities to meet your individual needs. This will also make the process of investing more enjoyable, as you’ll avoid the hard-sell techniques employed by many rogue agencies.
Tip 3 - Invest your time. Or don’t.
Being a property investor is often a full-time job which demands a substantial amount of time and effort to manage and maintain your property.
Many property investors simply do not have the time or capital required to be a full-time landlord. Over the past few years this has led to a meteoric rise in the popularity of hands-off property investments – in which the property is operated by a specialist management company who lease it back from the investor through a unique investment model.
These investments are becoming increasingly popular as investors are able to gain high returns with minimal effort. Because the management and maintenance of the property is taken care of by the operator, there are no ongoing costs for the investor which effectively means less cash input is required.
Tip 4 - Identify the most profitable areas for investment.
Understanding demographic trends will help you to identify the most profitable areas for investment.
Areas with expanding populations, as well as areas seeing ongoing investment, are likely to benefit from increasing demand for accommodation. Increased demand usually leads to increases in both rental rates and property prices, offering high yields and improved potential for capital appreciation.
Tip 5 - Think outside the box.
Property investment has changed dramatically over the past few years. With changes to buy-to-let investment introduced this year making residential property less profitable for many, lots of investors are moving away from traditional buy-to-let property, instead putting their money into specialist property sectors like hotels, care homes and student accommodation. These markets provide hands-off investment opportunities with impressive returns and no ongoing costs or fees, offering investors a greatly improved ROI.
If you’re looking to invest your money in property in 2017 it is worth looking into all of the options available to you, as something ‘outside the box’ may be exactly what you are looking for.
For more information on how Select Portfolio can help you find your ideal property investment contact our team today on +44 (0) 1202 765011.