The Best Property Investment Strategy

property investment strategy

How to Get Rich From Property Investment Strategies

Property investment is a long-term investment, you may not get rich fast. It’s very much like planting a seed, in order to enjoy the harvest many years later. Of cause, there have many ways to make fast money in properties provided you are lucky and smart to buy below market price and sell above market price. There are a number of The Best Property Investment Strategy commonly in use in UK they include

Buy and Hold

This is the most usual form of property investment strategies…you buy a property and hold on to it for the medium to long-term, renting it to good tenants and claiming the interest payments and maintenance against your taxable income. In time, the equity of the property increases to a point where you may want to sell it and pay out some other real estate debts, or conversely you may pay it down until the rental income is higher than the interest and expenses. Another option would be to use the equity in the property to fund further property purchases, which would have the effect of leveraging the asset exponentially.

Location:

you are relying on strong equity growth, so a miscalculation here could find you breaking close to even. Historically, properties on average should double in value every 10 years, but the cautionary word here is on average. Some appreciate higher than this, and some much less. If you have done your homework and due diligence on the location, then the equity growth will be there….if you have purchased in the wrong area, you may find a very different story.

Property:

If you bought an established property with some age on it, you may find that your maintenance costs blow out more and more the longer you own it. If the property is an old colonial with weatherboard construction, you will need to consider periodic painting and carpentry work; whereas if you purchased a new brick tile family home, you would have a few issues.

Renovate

The idea here is to buy a property that would increase in value with the addition of some renovations, either as simple as a coat of paint, or possibly a complete refurbishment. The value after renovation should be much more than the cost of the property plus the renovation costs; sometimes investors turn the home over and cash out, or else they may hold on to it and refinance to access the equity for the next property.

Considerations

Have an expert inspect the property so that you have a good idea of what is going to be required to make the improvements, and that you don’t get caught out with something like needing to restamp the property or replace the roof! If the renovation is on the large side, you would need to keep a tight rein on costs, as these kinds of projects tend to get away from you, eating up any profit you thought you might make. These kinds of projects are generally only profitable if you intend to do all or most of the work yourself, so make sure you are capable of finishing what you started!