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Becoming a Property Investor: 5 Steps to Take

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With bank interest rates at an all-time low and savings within accounts almost collecting dust, more people are choosing to deposit their money into property rather than anything else. For a long time, property investment has been considered a stable and secure market for individuals to put their money into. However, it’s not entirely risk-free, and this should be considered when you’re looking at investing in property. Despite this, if you’re successful within the property market as an investor, there are substantial rewards. 

property investor

If you’re interested in learning more about how to become a property investor and the steps you should take to reach your goals, take a look at the guide below for more information. Being successful is a key element of being a property investor, which is why you have to do your research prior to handing over any money on a purchase. Doing so will ensure you don’t lose any money!

Target apartments rather than houses

An investor looking towards buy to let opportunities will want to choose apartments rather than houses. Why is this? Investors who put their money into flats or apartments generate highly profitable returns. However, those who invest in houses will find they cost a lot more money, and the return isn’t as high as it could be with an apartment. Plus, apartments suit young professionals who have jobs or are just starting out in their career, and houses typically appeal to families who are looking to settle down. Ultimately, deciding between an apartment or home investment depends on your situation and what works best for you. Assess your finances before deciding which you’d prefer to opt for. 

Search for highly profitable areas

Various cities throughout the UK are undergoing vast regeneration and restoration, which means these areas are ideal for property investors who want to swoop into a market before the property prices soar. Over the last decade, property prices have steadily increased throughout the UK, but some areas have been more profitable and lucrative compared to others. According to a blog written by RWinvest, the best places to invest in the UK include; Liverpool, Sheffield, and Newcastle. This is also evidenced in Totally Money’s Buy to Let map which puts six Liverpool postcodes in the top 25 for buy to let areas. The key to successful property investment is finding the prime pockets of profit and discover where is going to make you the most returns. 

Look towards city-centres

Unsurprisingly, city-centre locations always give investors the most success. This is because there is a huge demand for city-centre buy to lets since potential tenants want something that is close to their workplace as well as local amenities. If you’re able to get a good deal on a city-centre development than you’re almost guaranteed success. If you don’t feel confident purchasing a property that is right in the centre of a city, then you could look at up and coming areas that have predicted growth to be sure that you’re making the most of your property investment. 

Decide on an investment strategy: hands-on vs hands-off property 

There are two main types of property investment strategies that are tried and tested (and that work!). Hands-on investment is the less common one as it involves being actively involved with the whole process behind investment, including acquiring new tenants when it’s needed and dealing with their issues/requests. However, hands-off investment is a strategy that suits a larger number of people since you can still have a full-time job when the investment isn’t taking over your life. Those with families and other commitments can consider their options, but ultimately, hands-off investment is going to be their ideal choice. 

Research around the benefits of off-plan developments

Off-plan investments are often shunned by investors as they’re scared of the risks that come with purchasing a property that is yet to exist. However, with the rise in technology use in the real estate market, there has never been a better time to invest in an off-plan property. There are countless benefits of off-plan property, and research will be your best friend as you decide which type of investment you want to choose going forward. 

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