The Most Effective Property Investment Strategies That Make You Money

property investment strategies

There are certain mainstays in terms of property investment strategies. Yet your approach is also going to be unique to your position and the types of properties in which you plan to invest. First, are you going residential, commercial or both? Real estate investors often dip their toes in the residential market first, and some stay there. Commercial real estate can be more lucrative, but it can certainly be more volatile.

Commercial real estate often requires more capital than residential real estate, too. Notice the keyword there is capital. You need capital as a real estate investor. The zero money down gurus that tell you to leverage yourself beyond comprehension are making money during good times and could be shaken to their core when, not if, the market gets rough. You do need capital, but that doesn’t mean you can’t leverage your assets wisely.

These Property Investment Strategies Are Key To Growth

You just have to watch and be diligent about what you’re doing. Not everyone can pay cash for a property they wish to invest in, so financing is often key. You want financing that makes sense for your situation. On top of financing, one thing that expert investors often recommend is using equity in other investment properties to help you make additional purchases.

You can leverage your property investment. That can be one of the most effective property investment strategies, but you do have to use your business sense. If you think about it, leveraging yourself too much too quickly is never a good thing. You always need that working capital and your income flow, too. You want your business to grow, and the income is reliant upon making good property investments.

You also might need a good property manager. The way your properties are managed has everything to do with the income you generate. Perhaps you plan on taking on the day to day management yourself, at least for now. If you were to build up a large and diverse portfolio of properties, however, that would be a little difficult. You would at least need a team of professionals behind you, or you might outsource your property management needs altogether.

Have you heard about negative gearing? There is certain terminology you need to learn. Negative gearing can help you out in a sticky situation. It’s all about a property not producing adequate income based on what the investment costs you in the first place. You can get tax benefits from that type of situation, although it’s not ideal. You can see that it helps to know those types of ins and outs, however, when you are looking at the most effective property investment strategies.

You are going to have to keep those properties in good shape. You may or may not be relying upon property managers as mentioned. Yet you are certainly going to be relying upon your bank account, your budget and what funds you have available. Keep that in mind as you take good care of your property investment portfolio. It is a business, and you must take that type of approach.

We Reveal the Secrets to Spotting the Best Place to Invest in Property

Best Place to Invest in Property

When you are trying to find a place to invest your money and want to avoid the markets, then you will often turn to real estate. While it may seem a little bit on the odd side to do this, you will find it is a stable investment and in most cases will grow in value. You just have to make sure you know how to find a place to invest in property and the type of property to guarantee you are going to have a strong and growing investment versus one that is not going to be growing at all.

How To Find A Place To Invest In Property

The location of the property is one of the key factors you need to consider. While you may think the property location will not make that much of a difference, you need to realise it actually does if you want to make money. For example, if you are buying property in an area that is declining in growth you may make some money, but the chances are the investment will not pay off in the long run if it ever does. So you will want to make sure you check to see if the area is growing and popular or if it one area that is starting to decline in growth.

The type of property you are buying is something else you should look into as well. When you are investing in a residential property you will need to consider the repair work and resale of the property or renting it out. If you are getting a commercial property you will find that you will need to consider the type of tenants you will have moving into the building and even the types of businesses you will allow to move into the building to avoid it from distracting from some of the other tenants that would be in the building.

Finally, you will want to consider the amount of work that has to be done to the property for it to become tenable. You may have never considered this aspect when you are getting the property, but no matter what you are going to do with it, it has to be made to the point other people can stay in it. So you will want to make sure you look at the work that needs to be done for the property to make it livable, but also make sure you know about the cost and amount you can get back on the property from getting it completely repaired.

Being able to find a great place to invest in can be a good thing. However, what you need to know is how to find a place to invest in property. By knowing about this information it will be very easy for you to invest your money and know you can make quite a bit of money from the investment. Without this you may have some problems in finding the best investment to make on the property and end up disappointed in the results you are getting.

When deciding on the right property investment company, you should always check out their reviews. Sterling Woodrow Reviews.

UK Stamp Duty on Investment Property Explained

Paying Stamp Duty On Investment Property

When buying an investment property, you need to consider all of the costs including the stamp duty. Stamp duty on investment property should be considered before you close the sale as you need to be able to pay this. There are a number of points that you should consider when looking at stamp duty on investment property.

What Is Stamp Duty?

If you have never bought a home in the United Kingdom before, you might not know what stamp duty is. Stamp duty is a land tax which is levied by the government. The tax is due for property which is bought in the United Kingdom, including any investment properties.

How Much Stamp Duty Will You Have To Pay?

All property in the UK will have stamp duty when you buy it. However, the amount that you have to pay will depend on 2 factors. These factors are the price of the property you are buying and whether or not it will be your primary residence. The stamp duty will then be charged on a tiered scale.

The more the property cost, the more you will have to pay in stamp duty. If the property is below the set amount of £125,000, you will not have to pay stamp duty. If the property is an investment property, you will not have to pay stamp duty, but you will be subject to a stamp duty surcharge. The surcharge will only be on second homes and investment property.

The surcharge will be a standard 3% of the property value and will be added to the stamp duty that you have to pay. This will increase the overall tax that you are charged on your investment property and you need to consider this.

stamp duty on investment property

When Is The Stamp Duty Paid?

When you buy an investment property, you will need to complete an SDLT return. This return will have to be submitted to HMRC after the close of the property sale. This tells the revenue service that the property has been purchased and that stamp duty will now be due. After the completion of this return, you will have 30 days to pay the stamp duty.

How Do You Pay The Stamp Duty?

While it is possible to pay the stamp duty yourself, most property investors in the country will leave this to their solicitor. If you pay the stamp duty yourself, you will have to follow the instructions that HMRC provides to you. If you leave this to your solicitor, they will handle the actual payment but you have to provide the funds to them. Regardless of the way that you handle the payment, you will be liable for ensuring that the stamp duty is paid in time.

Is Stamp Duty Tax Deductible?

There are a lot of people who wonder if stamp duty is tax deductible because it is paid on an investment property. The short answer to this will be no, you cannot deduct stamp duty as a business expense on your tax return. The only deductions you can make regarding your investment property will be repairs, maintenance, insurance and general running costs.

Discovering the UK’s Most Profitable Property Investment Opportunities

Whether one is looking to purchase a home in the UK’s Profitable Property Investment Opportunities or as their permanent addresses, vacation addresses, addresses for ageing parents or just keeping in line with John Paulson famous quote “If you don’t own a home, buy one, if you have one buy another one. If you own two homes buy a third one and lend relatives the money to buy a home”, owning a piece of real estate or two is replete with gains untold. How then do you determine where to invest your hard earned finances for optimum returns on investment? In which borough will you be sure to have tapped into guaranteed demand? Surveys have indicated that Yorkshire, the North West and North East are registering UK’s highest and increased growth in real estate prices and will continue to report this curve going into a decade.


Manchester property investment

Historically considered UK’s second city. Real Estate growth in Manchester, renowned for red-brick, is rapidly outpacing London owing to strong growth experienced in its labor market not to mention a high retention rate of academic talent pool from a six-figure student population. This makes it out to be a hotbed for young professionals transitioning into home ownership underpinning demand for real estate. Manchester also boasts a very rich culture that boosts its image as a destination.


liverpool property investment

Hot on Manchester’s heels in the race is Liverpool which boasts United Kingdom’s fastest growing economy. Liverpool is inching towards an ambitious project that will see five new neighbourhoods sitting on a 60-hactare field. Property and real estate in this city is predominantly a young professional’s affair. Just like Manchester student population retention is a key factor playing Liverpool well into the top two.


leeds property investment

Leeds provides a genuinely interesting and compelling real estate proposition especially with the ongoing process of gentrification. It remains in relatively healthy demand with three universities providing a thriving student population that funnels into the long term resident and property buyers. Leeds is a city with lots of growth coming its way.


birmingham property investment

Britain’s second largest city with a population in excess of four million has seen an intense upsurge in demand for real estate. Birmingham’s proximity with London is a key factor in its growth in real estate rates.


sheffield property investment

Tenants are spilling over from Leeds owing to high prices in Leeds and opting to settle in Sheffield which is a softer landing especially among first time home owners. Homes in Sheffield are slowly gaining in rates and investors are beginning to see growth as one of the UK’s Profitable Property Investment Opportunities.

When planning to invest in real estate you will need to have an investment strategy.

What do you expect from your investment?

Do you seek high yields?

Are there areas you have particularly identified for investment?

What are your current limitations in regard to finance options?

What are the risks in the venture you have identified and are you prepared to assume debts?

How do the risks measure against the benefits to be accrued from the engagement / investment?

How will the project be managed?

Are there suitable partners in terms of finance and technical aspects of the venture? Identify them.

Set out your course of action advised on the above and set definite and achievable time frames.