The UK property market is continuously evolving as it adapts and resists to unpredictable changes within the country’s economy. Viewed as a haven for investors, more recently there has been a series of numerous pitfalls in the market that are important to watch out for before surviving in property investment.
During a period of an impending Brexit, changes to tax, and an economy that is constantly fluctuating, it is important to follow strategies and guidelines as well as proactive observance of the market to boost your chances of being a successful property investor. Here is everything you need to know to survive on your property investment journey to Financial freedom.
Having goals in property investment help to underpin your entire strategy as it gives you a clear focus when progressing forward in your property career. What is your purpose? Do you wish to embark on a career in property? Are you using investment as a form of passive income? Are you placing your savings into property? Or, are you using property instead of a pension? After asking yourself a list of questions, these will keep you in line and help to highlight how well you are doing. After knowing what you want out of an investment you can start considering time frames in which you want to see results.
Creating a time frame for your set achievements helps them stay in focus, as well as providing a clear indicator as to whether you are on track to meet your goals, whether that be financially or personally. You may find that the time frame you set for yourself determines what type of investment works best for you.
You could purchase an off-plan development from property investment companies like RW Invest, which are significantly cheaper than a completed property to purchase, but you will only receive a rental income upon completion of the project. If you opt for investing in a completed development, you will receive your rental returns more or less straight away. If your objective is to make a return during a short period, then flipping a property may be the best path to take. For higher returns over a longer period, buy to let is the most suitable option.
When investing, getting your timing right is crucial. Research the market to double check you are investing at the right time as sometimes you may have to cut your losses and move onto another investment. Property investment requires thorough research beforehand, but always keeping a vigilant eye on the market is key.
Once you have formed an investment plan, and chosen the type of property you wish to invest in and established your target tenant, keep clear notes of your investment process, all costs involved, and be sure to plan ahead. Are you prepared for sudden changes in the property market? Could your investment remain lucrative if property prices fall?