3 Signs You’re Ready to Buy an Investment Property
Buying an investment property can be an exciting and incredibly lucrative venture. If rushed into, however, this venture can go badly if the investor isn’t in the right place to purchase an investment property. If you’ve been thinking about investing in property, here are three signs that you’re ready to get started.
You’re financially ready
If you’re not in a good place financially, you probably shouldn’t be thinking about investing. Investing in property is a big commitment, and even if you’re paying for your investment with a buy to let mortgage, you still need to be sure you can carry through with the payments.
Some property companies require you to pay for their investments upfront and without a buy to let mortgage. In this case, you’ll need to have a significant amount of money available to make the purchase. If you’ve recently started earning more money through a promotion or a new job role, or you’ve inherited some extra money, this is a clear sign that you could be ready to make your first property investment. If you don’t think an investment would be possible with your current income, you should spend some time saving until you feel ready to make this commitment.
You’ve researched the market
Property investment requires a lot of research to get right. You need to research the market in-depth in order to find out the areas that offer the highest rental yields, the best potential for capital growth, and the highest rates of demand from tenants. Without these things, you’re missing out your ability to generate attractive rental returns through both regular rental income and capital gains in the future. Over recent years, the north-west has started to stand out as a property hotspot. The regions key cities, Manchester and Liverpool, bring investment properties with some of the highest rental yields in the country and present the best rates of house price growth when compared to any other UK region.
It’s also vital to research the best property investment companies before making any decisions. Look for companies with properties in thriving locations, but that also have a strong track record for success and customer satisfaction. RW Invest, based in Liverpool, is an example of a leading property company that ticks all the boxes. This company offers investment opportunities in the UK’s key cities, Liverpool and Manchester, with rental yields reaching as high as 7 and 8 per cent. Once you’ve done your research and have a good idea of where you want to invest and who with, you’re on the right track.
You know your long-term goals
Every property venture needs an investment strategy, so before you move forward, make sure you’ve created this. Your investment strategy will look at things like long-term goals. Work out the steps you should take to achieve these, contemplating whether you’re going to focus on buy to let or just buy to sell, and factoring in all the costs that come with investing along with any potential pitfalls. For instance, if you know that you’re investing in order to save for retirement, you should work out how much you could potentially be making from your investment each month, and think about what percentage of this you want to put into your savings. You also need to establish an exit strategy. This is a plan on how and when you’ll sell your property later in life to ensure you benefit from the highest return on investment.
Thinking of Buying a Property?
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