Residential property investment has many advantages, over and above the chance to find the home of your dreams.
Capital growth these days can be slow to come, but many buyers of residential investment properties are identifying a market that is ripe for Buy to Let investment which, if planned correctly, can provide an ideal strategy to reap solid rental yields to add to eventual capital growth returns in the longer term. Due to the world economic downturn, many would-be buyers still find themselves unable to do so, preferring to rent, until such time as they see interest rates drop and the possibility for growth back on the horizon. A resulting high demand for rental properties creates obvious opportunity for buy-to-let investors who purchase in desirable locations.
Historically, property has always proved to be a sound investment and this fact cannot be disputed even today, when real estate returns are still less likely to lose you money than the stock market. If planned carefully, investing in residential property can bring you solid returns, provided of course that you purchase in the right location and at the right price. This might sound obvious, but many buyers omit vital research when purchasing in haste.
Residential investment property companies can often provide expert advice on all the due diligence required to secure the right property. They will also be well versed on the various strategies you can employ to ensure optimum growth on your investment.
It is always advisable to be as well-versed yourself in the skill of successful residential property investment when it comes to parting with your hard earned cash.
- Seek the lowest possible price that will optimise returns, whether you seek to rent or sell your investment property. Off-plan pre-release or launch prices are a great way to achieve this, as are carefully selected distressed or below market value offers.
- Don’t forget to do your sums and factor in funds for maintenance, taxes and other related costs should your exit strategy not materialise as quickly as you plan.
- Check out the market drivers: location is key to the success of your residential property investment. After all, the vast majority of renters or eventual purchasers do not enjoy living in isolation, away from vital transport links, community and recreational services. If you wish to shift your property easily in the future, you will need to tick all the boxes in terms of location.
- Research the economic condition of the country in which you are investing. What does the area rely upon for economic growth and what is the forecast for the lifetime of your intended residential property investment? Emerging markets boast attraction from new businesses, in turn indicating a growth in demand for quality property to support a new housing demand in the area. Foreign Direct Investment (FDI), too, does wonders to boost growing economies.