Property investment is one of the most established and lucrative ways to make returns from any initial start-up capital. People sometimes avoid investment altogether because of the misunderstandings surrounding the risks you take involving yourself in the property market and investment as a whole. Perhaps you’ve never considered an investment because of these myths, and you need to be taught a little more about the market and how investing in property works?
Regardless of your financial situation right now, investing can truly have a huge positive impact on your money and how much is in the bank. For this reason, we have produced this quick guide on how property investment can have a positive impact on your finances. If this guide doesn’t convince you that investment is your next venture, then we haven’t done a good job. We’ve also included some top tips for those getting started in property investment.
How Are Your Finances Impacted?
Property investment may initially see a large percentage (if not all) of your savings taken away from your bank account. However, this is a good thing! Having your money in an asset (such as a house or apartment) means that rather than gaining a small amount of interest over the course of a decade, your property could skyrocket in value (providing it is in a high yielding area). You could stand to make much more than savings interest.
Plus, if you decide on a buy to let investment, you will have the continued rental payments that will be given by the tenants in your property too. Therefore, you’re making money every month, and your property is gaining value also. However, the issue with this is that you need to ensure you’ve got a property within a popular and thriving area. That way, your property encounters high capital growth. RWinvest, award-winning property experts, suggest investing in a Northern city rather than somewhere in the capital of the UK, London. Cities like Liverpool, Sheffield, and Newcastle are all featured in their best places to invest guide.
Tips for Successful Investing
If you want to be a successful property investor, you must listen to professionals and do what’s best for your strategy. Going into an investment, you may not have a lot of knowledge, but this will definitely change as you build up your property portfolio.
- Ask for advice – this is especially true for investors who have never invested before and are unsure of the market. Uncertain times can make investing unclear, so asking for professional advice can give you confidence with your investment.
- Trust the experts – If you do ask for advice or seek help for professionals or experts, trust what they say! There is a reason they have so much experience and expertise in a certain area, and it’s about knowing that they’re trustworthy and wouldn’t give you fake advice either.
Choose a hands-off investment strategy – those of you who have a fulltime job or need to spend time with your family will agree, hands-off investing is a lot easier than being hands-on. Hands-on investment requires you to deal with tenant issues as well as demands and other aspects of managing a buy to let. Instead, perhaps think about letting a property management company take care of this for you!