Property investment is at an all-time high in the UK. With more people turning to property investment over traditional investments as a way of funding their retirement and with the changes in pension reforms boosting the market, the promise of high returns is luring people in from all walks of life. However, there’s more to property investing than what you see on TV programmes or read in the press and to be successful you really need to know the market and do your research. Here are our tips on how you can get to know the property investment market and spot the opportunities:
Big Picture – successful investors will always be focused on the big picture. They will have a clear view of the long-term income they want to achieve, a game plan on how to get there and a strong understanding of the size and type of property portfolio they want to build. Successful investors don’t dabble in the market; they treat it as a business and have a business plan in place.
Understand the market – of course, before you can focus on the big picture you need to understand it. Successful investors will do their home work and build a thorough understanding of the property sector they are investing in. They will be clear about who the target audience is, what the demand is, how much the rent should be and what the returns are likely to be.
Focus – the rental market is wide and varied. There are traditional buy-to-lets, HMOs, PBSA and commercial properties to name just a few. Savvy investors tend to focus on a specific sector in the market and concentrate their efforts in that area. By doing this they build strong knowledge about the sector and this enables them to identify the prime opportunities when they surface.
On the ball – the property market is always changing and it’s important to keep on top of new laws and changes in legislation. Successful investors stay on the ball when it comes to change and know how to take advantage or build in contingency plans when these changes happen.
Aware of the risks – Typical problems that inexperienced investors encounter are over-spending on renovation, not understanding the rental ceiling and being caught up in void tenancies. To be successful you need to be alive to these risks and plan accordingly.
Successful property investment takes time, know-how and due diligence. At Barrows & Forrester we are laser-focused on prime city centre residential developments and purpose-built student accommodation. It’s all we do and because of that, we are experts in these sectors. If you would like to know more about these asset classes then please contact us now.