Most people trust bricks and mortar with it being a tangible investment we can understand. Further, it helps that property investments are often said to outperform equities. But what is the best way to capitalise on Property Investments?
Will Kirkman, of This is Money recognises that though there is economic and political uncertainty causing a property market cool down in many areas of the UK- this has not deterred investors, still the UK continues to remain one of the leading hotspots for domestic real estate.
Considering trends of property investments over the years, a moderate investor can expect high returns of between 9-12% pa. Two of the main ways you can make a return on your property investments are through:
1. Rental Income
The idea is to purchase properties in areas where you have researched is attractive for several reasons for tenants looking to rent a home.
2. Selling for a profit
When you are purchasing property you may have either a long- or short-term goal.
– Long term it may be that you have particularly decided to invest in a developing area, knowing that the value of your property will increase as the area does and so when you do decide to sell in the future your profit margins will be pleasing.
– In the short term you may wish to buy below market value properties, possibly because they are underdeveloped and then carry out work to increase the value of the properties and in doing so you are certain to capitalise from any works.
There is a wealth of income streams within the property world for investors. It is key to understand what you want personally and then consider how much profit you can get through property investments. You may consider starting by building a steady portfolio of properties and then a great way to increase profits through property investment quickly is to then diversify your portfolio. This means including both short and long-term investments whilst maintaining a steady stream of income through your rental properties.
Becoming an investor in properties is a common desire and very accessible, may even sound easy but the reality of becoming a property investor is timely. For some people you may wish to take advantage of our expertise and time dedicated to finding bespoke investment opportunities for you but stay responsible for managing your portfolio’s. Though it is no secret that being a landlord at times can be a consuming commitment; one that can’t be taken lightly. For others you may recognise that you could benefit both from our services aiding you to source suitable property and ensure the buying process is seemingly straightforward and our capabilities to manage your property portfolio professionally.
Our team of experts can help you with the hard work behind being a property investor. We especially implore our current landlords to have us explore opportunities for further investments and develop your portfolios so that your investments are working even harder for you. Please get in touch for more information and advice.