The property market has always been a dream market for investors. Be it is a long-term property investment, a BTL property investment or even a student accommodation investment, it holds a good reputation for bringing handsome ROI to the investors.
The latest figures from the government authorities tell us that the country is facing a continual shortage of houses. The Wall Street Journal reports that along the growth of the property market of the world, the lending on real estate, both commercial and residential, has also made a roaring comeback. invest in property london
If you are a novice who dreams of making a fortune in the property investment market or an established property investor, the following tips will keep you safe from taking wrong property investment decisions.
1. Carry out proper market research
The basic step, before doing any kind of investment in any sector, is that you should do your own research about the industry. The property market has always shown ups and downs and the nature and volume of the change fluctuate across the regions. Learn the current market trend and future predictions, made by the authorities, as well as gather information about the average market price of the properties in your targeted area. Conversing with the people living around your property area will help you to understand the current market price of the properties in that particular area. In order to understand the pitfalls and the future market trends in the property market, you can speak to people who have experience in the market and read journals and reports from various experts and authorities that are available both online and offline.
2. Plan your budget
You must be clear about your budget on your investment plan; otherwise you might end up spending too much money than actually required or even spending too less money that could have earned you more profit than anticipated. This is really an important matter to keep in mind that property investment is a long-term investment and you must make sure that you have enough cash reserves to meet the contingencies. If your buy-to-let property is lying vacant for a couple of months, paying the bills will seem impossible for you unless you have proper fund reserves. Never over-invest as it will make all your money tied up at one place when the market is down.
3. Choose the right location
Choosing the property in the right location is a very important thing to remember while making an investment. When you target a property for sale or a buy-to-let investment, it has to be properly located considering its proximity to one’s basic requirements, such as shops, hospitals, schools etc. Buying a property within your accessible location will give you more control and confidence over your investment. The ‘location advantage’ is always directly related to the capital growth of the property.