Introduction
Property investment is a popular choice for many people. It can be relatively straightforward and very profitable, but it’s also important to know how to get the most out of your property in order to increase your profits. Here are some tips on how to do just that:
Location
Location is the most important thing to consider when buying property. It’s so important that it’s the first thing we think about when looking at a property.
A good location will make your property more attractive and increase its value, while a bad location can have the opposite effect. So, how do you know if a location is good or bad? You need to look at:
- The surrounding area – Is there anything nearby that will attract buyers, such as schools or shops? How far are these things from your home?
- Other houses in the street – Are there any similar houses around yours that have been renovated recently? This shows that other people see potential in this area too!
Target the right market
You only want to invest in properties that will give you the best return on your investment. The right market is the one that will give you the best return on your time, your energy, and yes—your money. You don’t want to spend years working with a property that doesn’t pay off at all.
Analyse local trends and markets.
The first step to successful property investment is to assess the local market. This requires a thorough understanding of what the current conditions are, as well as how they may be changing.
The following questions are worth asking when conducting your analysis:
- What is the local market like?
- What’s driving demand and what’s keeping prices high?
- Are there any major developments or infrastructure projects that could change things in the near future?
- And when it comes down to it, what are people actually willing to pay for homes in this area at this moment in time?
- Look at average asking prices for houses on real estate websites such as Rightmove and Zoopla; then compare those figures with historical records from previous years.
- If you live in an area where prices have gone up over time without any major economic events occurring during that time period (like recessions), then chances are good that those prices will continue increasing further still – assuming nothing changes within our current economy.”
Adding space
Adding space to your property is one of the best ways to get more out of it. Not only does it make it easier for the end user to enjoy your home, but it also gives you an opportunity to create extra income by renting the extra rooms.
Here are some tips for adding additional space:
- Add a loft conversion
A loft conversion can be a great way to increase the amount of living space in your property, and also provide room for guests or family members who may visit on holidays or other occasions. If you’re thinking about doing this type of work yourself, don’t forget to get the appropriate consents from your local council—make sure you find out whether there are any restrictions first before making any decisions!
- Add a basement conversion
Another option is adding another floor below ground level; while this may require more extensive construction than simply converting an attic into living quarters (and therefore cost more), many properties have usable square footage below ground level that would allow for additional development.
Leverage Professionals to Increase Profits
A professional can help you get the most out of your investment. While there is an upfront cost, professionals add value to a project, often making their fees worthwhile.
- Real estate agent
- Lawyer
- Contractor
- Property manager (if applicable)
- Mortgage broker (if applicable)
- Private buildings inspector (if applicable)
In addition, you may want to hire outside professionals as well: a designer and landscaper might be worth the cost.
Property investment requires more than just purchasing and renovating property.
To be successful in property investment, you need to know the market, location and legal aspects of purchasing and renovating properties. You also need to understand financial aspects such as taxation. While renovating a property is a large part of the process, it is only one aspect of property investment.
In order to make sure that your investment remains profitable over time, you must understand how marketing works within the industry and how it can help you achieve your goals.
Conclusion
Property investment is a great way to build wealth, but it requires more than just purchasing and renovating property. Location, leverage professionals to increase profits, buy low sell high and target the right market are all key factors when investing in property.
