Choosing which property to invest in is an important decision and requires appropriate research and due diligence. There are a number of things that are important to bear in mind when you are making this decision so make sure you look into the following so you can choose the right property investment for you.
It’s up to you whether you want to invest nearby in a location you know or further afield in area that is showing considerable growth. Local knowledge can be a strong asset for potential property investors and if you’re aware of an area where prices are soon to go up or regeneration efforts will impact, this knowledge can help you make informed decisions and see opportunities where others could not. However, if you live in an area where house prices are high or there is a definite ceiling on property prices it’s worth looking further away to get more value for money. By looking for areas of the country where house prices are increasing at an impressive rate you can choose a property that will be worth more when you come to sell.
Rental yields are the bread and butter of property investment and it’s essential you find a property where rental yields are high. The Liverpool postcode of L7 was recently found to be the best in the UK for rental yields, with an average of 11.79%, nearby postcode L6 had an average of 11.59%. Another profitable area is Middlesbrough, its TS1 postcode has an average yield of 10.94%. Rental yields are the most important factor when it comes to property investment as this is the monthly revenue you will receive. It can also allow you to figure out how soon the property will be able to pay for itself and how much you can add into your budget.
Another important thing to consider is how involved you plan to be with your property investment. Whether this is painting and decorating, totally reconfiguring the interior or doing nothing at all, you need to decide how hands on with your property investment you want to be. Many busy professionals who don’t have time to put extensive effort into a property investment, buying with an experienced property investment company like RW Invest is a hassle free way to start out in property. Some people choose a property where they can get their hands dirty and add value themselves, but this isn’t always an option. It’s important to calculate how much value you can add to your property and that your spend on renovations doesn’t push your profit margins down. It’s also important to make sure you don’t spend more than the ceiling price in your area.
It’s also important to think of who your ideal tenants are and what they are looking for. If you want young professional tenants, then one-bedroom city centre apartments are ideal. If you’re looking for students, then your property needs to be close to popular universities nearby. If you want to let to families then it is important to choose an investment property that is close to good schools. Choose a type of target tenant who you know has a demand for rental property and figure out what they are willing to pay and where they want to live.