If you want to make the most out of your investment, then you have come to the right place. This guide will show you how you could rocket your portfolio today by simply making the right choices with the options you have. If you want to know more, take a look below.
Buy in a Good Area
At the end of the day, nothing adds value more to a property than a surge in popularity. Even in declining markets, it is important to know that certain areas of the country continue to rise in price. If you want to predict where these kinds of hotspots are, then you should know that it’s not just about luck. You have to take into account the transport links, the local infrastructure and also the schools. If you can buy in an area that has just started gaining in popularity, then this can help you to safeguard your investment over the long term.
Don’t Run before you Can Walk
A lot of investors have failed by simply trying to go too big, too soon. At the end of the day, the first few investments that you make should be safe bets and they should be easy for you to gain a return on too. It is a good idea for you to leave multi-home developments and also complete rebuilds until you know that you have a bit of experience under your belt. Even then it is a good idea for you to take your time and work with the experts in your area before you find that you are way above your head.
Budget
Good property investments are all about getting your finances as accurate as they can be. If you are not good with numbers, then do not be afraid to hire someone who can help you. Before you even think about buying a property, you have to budget for everything that you may have to pay for. This could include your legal fees, your materials, labour and more. It is a very good idea for you to build a contingency fund too so you can cover any unexpected costs. You will want to talk to someone about your potential ROI if you happen to sell your property too so you can work out your expected yield if you intend on renting out the property.
Use your Head
If you are attending an auction for a property, then this is great but at the same time, you have to make sure that you are using your head. If you let your emotions take over, then you may find yourself in a very dangerous place at an auction. You may also find that your emotions take over and that you end up spending money on a property that you did not go in with the intention of buying. If you go to an auction, then make sure that you have viewed the property already and that you have checked the budget. You also need to have a look through the legal documentation so you can figure out the best price you want to pay for the property. At the end of the day, chartered building surveyors & valuers can come in very useful here.
Maximise your Space
When you have made a purchase for a property, you then have to make sure that you are making use of all of the available space you have so you can maximise your results. If the family bathroom appears to be way bigger than it needs to be, then it is wise for you to figure out if you can make it smaller, or to see if you can add an en-suite bathroom somewhere else. Sometimes it is a good idea for you to figure out if you need to add an extension so you can create a larger living area or even an additional bedroom. Could you turn the cupboard under the stairs into a downstairs toilet?
Talk to an Expert
This is a very important tip when it comes to investments. This is especially the case if you are not familiar with whatever area it is you are buying in. If you have a gap in the knowledge that you have, then you should not be too proud to admit this, and you should be trying to seek advice from a local expert if you can. Local agents and various other investors/experts such as Invest & Co will help to give you an insight into the property you have found and if it really is a good investment. Just be wary of speaking to someone who has interests in the property being sold. The last thing you want is to be swayed.
Finding a Good Mortgage
If you are buying a home using a bridging loan or if you intend to use a buy-to-let mortgage, then it is wise for you to try and shop around. This will help you to ensure that you are getting the best rate possible. Talking with a mortgage advisor is also a good thing. They may have rates that are not available unless you go to them directly. The key here is for you to ultimately do your own research and you also need to speak to an advisor to see who can come up with the best deal possible. If you can do this, then you will soon find that it is easier than ever for you to get the result you are going for.
Spread your Risk
A healthy portfolio is ultimately one that is diverse. With most investments, you have to try and make sure that you spread your risk as much as possible. This will help you to protect your capital at all costs.
Flats are often the best way for you to make a good investment so make sure that you explore all of the options that are available to you here. But diversity doesn’t stop there, get creative. There’s the option of buying, flipping, and selling locally. Renting or leasing numerous properties. Or even buying and selling boutique properties abroad with the help of property management companies like MGP Property.
If you can do this, then you will soon find that it is very easy for you to get the financial stability you need to make the best decisions possible.
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