Key Tips for Successful Property Investment

Property investment is becoming increasingly popular. This is partly because the market is recovering from the financial crisis, bringing back investors and funds that have previously turned their attention elsewhere. It is also partly down to a rise in individual investors, particularly those looking to boost their retirement income after pension reforms gave them access to a nice lump sum for an investment of their choice. But how do you make a success of investing in property? A number of key tips can help you to maximise the returns on your investment.

Exercise Patience

Property is definitely a long-term investment, but ideally you should start being patient before you even begin. It is important to understand the pros and cons and to work out which property will be best for you in the long term before leaping in and parting with your cash.

Maximise Value

The more value you can add to a property, the better the returns it will generate in the long run. Whether it is a simple matter of updating the décor or carrying out a loft conversion to create a larger property, it is likely that added value will ultimately translate into added profit.

Spread the Risk

Like most types of investment, it is better to have exposure to multiple different investments if possible. Consider investing in multiple properties in different markets, even if it means choosing smaller properties than you were originally looking at. If the residential market or that brave international purchase turns lacklustre, for example, a student unit could help keep your portfolio profitable.

Favour Flats

In fact, if spreading risk forces you to scale back your ambitions in terms of individual property sizes this could prove a good thing. Most investors agree that flats tend to prove better buy-to-let investments overall than houses. However, it is not simply a case of making each individual property as small as possible, because larger flats tend to perform better than smaller ones. A two bedroom, two bathroom flat often proves the ideal.

Use Local Knowledge

Local knowledge plays a huge role in the viability of property investment. Information about transport infrastructure, local amenities, schools and access to medical care can impact hugely on the value of a property and on how easy it will be to fill. Starting with properties close to you is a good way to ensure you have the benefit of local knowledge. When looking at properties further afield, make sure you research the location and receive local advice.

Look for the Right Tenants

It is often a good idea to target particular groups of tenants. Young professionals, for example, will often pay excellent rates for good-quality properties that meet the needs of their demographic. Students are also becoming more discerning than their reputation would have you believe, and will often pay high rents for good quality accommodation. Choosing your property according to its potential to tap into lucrative markets is a good strategy for boosting returns and the reliability of your investment.

Author Bio

Hopwood House are property investment specialists, with a large portfolio of investment opportunities across the globe, including Dubai, Thailand, Turkey, The US, The Caribbean and in the UK Student property investment market.

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