In the UK, property is, without a doubt one of the best investment choices available, providing you have the available capital to set aside. It’s certainly true that certain areas are better than others for accumulating wealth, but the country is generally experiencing growth, in spite of issues such as EU uncertainty.
Are you a prospective investor looking to construct a property portfolio with positive potential? Take a look at this short guide, with some tips, common questions and misconceptions on the property market.
Where should I start as a first-time investor?
If you’re a first-time buyer, the area and type of property that you want to look towards depends on the amount of capital that you have available. Start by taking a look at the property market, and weighing up the value of the homes versus the rental yields averages that you can expect to make. The suspected growth of the area, and the amount you can expect your investment to increase by in value should you wish to sell it down the line.
For further help on which areas are projected to have the best returns in the coming years, don’t hesitate to get in touch with some experts. RW Invest, a property company specialising in developments across Liverpool and Manchester, have over 14 years worth of experience working efficiently with investors, and can offer resources and advice on how to plan out your investment journey to ensure you’re making the most of your money.
What do good and bad property portfolios look like?
Building up a varied and diverse property portfolio is an incredibly important measure to take as you evolve as an investor, as it will ensure that you are financially stable in the event of a dip or shifting market trend.
A good property portfolio is one with properties in a variety of different locations, and perhaps also for different audiences in mind. For example, you might have a high-end apartment of flat in London, and then a manageable purpose-built accommodation block in Liverpool for students.
Tip – Many avid entrepreneurs have investments, both big and small, across a wide range of different asset classes. It is worth looking into a variety of different investment methods, as you might find yourself more successful in one, and layering your portfolio will again add a safety net to your finances.
Is off-plan property a worthwhile avenue to pursue?
If you’re looking at investing in the property market, you may have come across the term ‘off-plan’ investment. This refers to a type of development that has not yet been constructed, and so you are investing in an ‘early bird’ development project that is set to complete in the near future. Some are sceptical about this sort of opportunity, due to factors such as the lack of a traditional viewing, but it is actually a brilliant way of getting a head start on an emerging marketplace, and often you will find that prices on these developments are below market value.
Tip – When looking to invest in an off-plan development, you can give yourself additional peace of mind by looking into the development history of whoever is working on the project. Additionally, some companies also offer VR viewings, which will allow you to get a better feel for the project in a completed state.