With everything from binary trading to spread betting widely practised these days, it is clear people are willing to take bold financial moves in a bid to make their money work harder. Watching the stock market and buying all kinds of assets, including bonds and shares in reputable companies, is popular despite the current economic volatility. But there’s another type of investment that can also give you peace of mind and protect your financial future – and that’s property.
Property investments come in many forms – from pooled funds to purchasing a flat/house to live in or rent out – but all shades of property investment can lead to fruitful returns. Of course, there are pros and cons to getting on the housing ladder, but as this is undoubtedly one of the most life-changing and poignant steps in life, take a look at this ‘investment 101’ guide to help you make the right decisions.
Do your research
When it comes to buying a property, many people think that hopping into the car with an estate agent and cramming as many house viewings into a small amount of time is the way to go. Carry on this practice weekend after weekend, however, and you’ll soon realise that things can quickly get chaotic and stressful, so to avoid an excessive amount of hassle always research in advance. You can – and should – rule out properties that don’t meet your needs in advance of a viewing.
Work out a budget
Not sure where to start? Well, firstly, you must work out a budget before applying for a mortgage. You will need to borrow enough to cover the cost of the property while still having funds spare to foot any fees and extras that might come your way. When you know what you’re eligible for a mortgage and how much you have to play with, you can then look up properties that are within your price range and start putting out feelers to see exactly how to the market is looking. Unlike other types of investment, every step of the home buying process should be transparent and upfront meaning you will be able to wrap your head around the figures with ease – so make the most of this advantage.
Location, location, location
There’s plenty to think about when buying a property of your own. From how many bedrooms you want your future abode to have to whether planning permission will be permitted to make changes you desire. All these details can cause quite a headache but, before signing on the dotted line, you must think carefully about location. Location hotspots are plentiful and with properties situated close to public amenities such as schools, hospitals, train stations, bus routes etc often being highly sought after and easier to sell down the line, this is something to consider.
Create a long-term plan
Closing a purchase on a new home is one thing, but if you want to make the most of your investment, creating a long-term plan is a must. Think outside the box a little and you may find that renting your property out each month can actually be more profitable than living in it yourself. You may also decide to rent out a spare room to cover a percentage of the mortgage or, if you can afford to, buy multiple properties in popular areas and rent out individual rooms in a bid to make as much cash as possible. You may even decide to purchase homes in a state of disrepair with the view of doing them up and selling them off at a much higher price. Cheap properties are out there and are often sold through housing auctions, so it’s well worth keeping an ear to the ground. The principle is the same, however, Do your research, work out your budget, narrow your search down to save time and pick the best location. If you buy each property as though it’s your own and apply that logic then you can make a success of your property investment.
Investing in property can be a smart move, you’ve just got to develop a strategic approach and try to find somewhere that suits your current and future requirements.