Investing in real estate is a potentially lucrative and yet complicated thing to do. For those that have minimal experience in the field, you will need to do your research prior to investing. We would always recommend staying updated on the latest real estate and property investment news before jumping into any investment venture. It is an exciting time for you, but you need to ensure you’re clued up on the market. Doing so will ensure your investment is successful, and that you enjoy vast amounts of financial gain through renting out your property or selling it. No matter where in the world you’re wanting to invest, you must know these things first.
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The Current Property Market
Throughout the globe, the property markets are a stable and secure investment choice for investors who have the start-up capital to invest. In uncertain times, investors often turn to bricks and mortar since it is a lot more reliable than the likes of stocks and shares. However, you must be aware of the best property markets to invest in. The United Kingdom has one of the most lucrative property markets with some northern cities offering high yields of up to 10% on new buy to let properties. In the recent guide by RWinvest, Liverpool and Manchester are named the top cities for buy to let.
Being clued up on the current property market and the types of investments that will give you the best returns will mean you can enjoy a large return on your property. However, if you fail to do this, you may end up with a property that isn’t gaining capital appreciation over time.
Your Financial Status
Unlike stocks and shares, as a property investor, you have to have a large sum of cash to invest in the likes of UK property. You can opt for a buy to let mortgage, but you will still need a deposit to put down on the property which can be thousands of pounds. Therefore, analysing your financial situation to see if you’re able to afford investing in property comfortably is the best thing to do.
At the end of the day, you don’t want to get a few months down the line, after investing, and find you’re struggling to pay your own mortgage or bills. There are hundreds of online courses suggesting you’re able to ‘invest in property with $0’, but this simply isn’t realistic. For your own financial health, we recommend you only invest if you’re financially independent and feel comfortable enough to venture into property.
The Projected Property Forecast
Every area you look to invest in will have a projected forecast for property prices for the next five to ten years. Although no one is claiming to be from the future and know how things are exactly going to play out, predictions are a great indication of an area and what you can expect in terms of capital growth. If you’re investing in property, you will want to make money on your investment so ensuring the property prices in the area you’re thinking of are set to increase, will ensure success. In their latest predictions, Savill’s has projected that the North West of the UK will have the most growth with 24% growth until 2024. On their list of predictions, Yorkshire is also expected to enjoy 21% growth too. These experts know what they’re talking about, so taking note of the areas they suggest investing in is one great way to ensure success.
