Property investment remains one of the most popular types of investment strategy and a great way to generate a higher income. In the UK, a number of major cities are gaining attention as property investment hotspots, with impressive rental yields, high levels of demand and an overall flourishing housing market.
However, while property investment might sound like an easy venture at times, the success of your investment largely depends on a number of factors.
If you’re considering joining the property ladder, read these tips on some of the qualities that make a good property investor.
Good research skills
The ability to conduct thorough market research is an essential quality for a property investor. Almost every UK city claims to have the strongest housing market.
If you believed everything you read or heard without doing any further investigation, you’d be in trouble. Good property investors do as much research as possible on the current state of the housing market, including finding out the best areas to invest.
North-west cities like Liverpool and Manchester are the current property hotspots for 2019 and beyond, with the best rates of house price growth, the most attractive rental yields, growing levels of demand from desirable tenants and a lot of capital growth potential.
Property investment companies like RW Invest offer opportunities in these prime UK cities, with prices to suit all budgets.
Patience and perseverance
Once you’ve made an investment, it’s important to always keep an eye on the market so you can be aware of any changes that could affect you. The UK housing market, although strong in parts, has become unstable in previous years.
The London property market is an example of this, as house prices in the city have dropped over the years, leaving a large degree of uncertainty for those who invested in the area.
While investing in a location with a stable housing market offers a higher likelihood of strong investment, good investors need to be aware that change can always happen.
If you’re investing with the hope for positive capital growth, remember that you often need to wait a long time to see the growth you want.
Investing in an off-plan property at a below market price is a good way to better your chances of capital appreciation, often allowing you to watch your property rise in value before even being built.
Money management skills
Since investing is all about money, you’ll need to have a good knowledge of money management in order to succeed. Work out any finance-related issues that will be involved in your investment, such as the amount of tax you’ll need to pay, and whether you’ll need a buy to let mortgage.
Be sure to monitor your monthly outgoings and keep track of your income, always being prepared for unexpected costs such as maintenance and repairs.
Of course, if you feel like you don’t have a good enough knowledge of financial issues, you could always hire a financial advisor to help you. This way, you’ll have peace of mind that everything is running smoothly and that you’re on track to a successful property venture.