Property Investment Advice: Four Top Tips for Successful Buy-to-Let Investing
Investing in property can be a very good place to put your money. It is possible to generate a lot of money from property and achieve large capital gains over the long-term, however it isn’t just as simple as buying a property and then letting it out. There are a lot of different decisions to make, as well as an array of different routes you can go down.
Property Investment Advice: Buy property that is highly ‘lettable’
One of the best pieces of property investment advice is to always choose properties that are in high demand on the rental market. Don’t be tempted to buy a luxury five-bedroom villa if a much small two-bedroom apartment will have a much wider appeal and be considerably easier to let out. In addition, think about features of the property that might make it more appealing to tenants. If you think the property will appeal to young professionals, is it close to good transport links? What about local amenities, shops and restaurants? If it is likely to have strong family appeal, is the property located near to good schools?
Property Investment Advice: Consider different property investment options
When it comes to property investment, most people opt for buy-to-let residential property. This can certainly be a good option, however it is well worth considering alternative options. In some markets, commercial property may provide you with better returns and allow you to take advantage of the success of particular industries. As an example, many investors in Dubai are choosing to invest in hotel rooms because of the emirate’s booming tourism and hospitality industry.
Property Investment Advice: Don’t restrict yourself to local properties
Whilst many people are naturally drawn to investing in properties in their local area, choosing to invest somewhere else can often enable you to save money and achieve higher rental yields. This could mean investing in another town in your home country, or even investing abroad. There is a wealth of information available online from consultants such as Jones Lang LaSalle who can tell you what’s happening within global markets and help you to make better investment decisions.
Property Investment Advice: Choose properties that are likely to need less maintenance
One of the worries many investors have is that they are going to have to shell out a lot of money on maintaining the property. With this in mind, it is better to choose properties that are likely to require less maintenance. This means that investors should opt for newer properties, where there is much less likelihood of something major needing to be done. Certain investment opportunities (like hotel room investment) essentially eliminate the worry altogether since they are usually fully-managed investments, with all maintenance carried out by the owner of the building.
Always approach property investment with your head, rather than your heart. Ultimately you are looking for an investment that will provide you with a good monthly return and that will have a good chance of increasing in value over the course of your investment. Perform thorough research, talk to experts, and take your time over choosing the right property.