Are you planning to invest in property now we are in 2021?
Whether you are a seasoned landlord operating a string of residences or a first-time investor just discovering the potential of the buy-to-let sector, certain core principles apply.
Global Investments top 10 property investment tips for 2021
1. Do your research.
Location, location, location!
Make sure you do your research, focusing on the best locations. These include areas close to a city’s business district and universities, so you can attract the right types of tenants. Central locations are often the most sensible in terms of demand, but this needs to be considered on a case-by-case basis. In city properties tend to be apartments.
If you would prefer Freehold, consider areas within an easy commute of the city. Out of city locations can often offer property for investment at a lower entry price than in town.
2. Compare like for like.
Consider your options for the local market. Always look for properties where you are paying a reasonable price per sq. ft compared to similar buildings in the local area, as well as those where tenant demand is outstripping supply.
3. Think long term.
Successful buy-to-let investment is about investing for the long term, not just the immediate future. That means looking at which locations are going to still be popular five or ten years from now. City centres with major regeneration projects could have potential.
4. Review the developer’s track record.
If you are buying off plan or new, make sure you are investing with a credible developer that has a solid track record of delivering quality properties.
5. Consider payment terms carefully.
Most credible developers will only ask for 30% maximum deposit and then the balance at completion. This means they have their bank funding in place and that the banks have scrutinised them. If you are being asked for more than 30% before completion, approach the investment with caution.
6. Choose the right agent.
If you are investing from overseas or simply a busy professional who’s planning for retirement, chances are you are short on time. This means you need an agent that provides a full management service. Choose the right partner who can negotiate the best deal with the developer, recommend reputable solicitors and financial advisors and offer you an ongoing, long-term support structure and after care service.
7. Do not shy away from off plan.
You can often find reputable developers, choose the best apartments, and get the best deals by buying off plan. This allows you to benefit from maximum capital growth and rental yield returns. Some developers offer a rental guarantee period for the initial few years.
8. Understand your yields.
Ensure you understand fully how to calculate yields, accounting for any mortgage payments you will need to make. Combining record low borrowing rates with high-yielding locations means you can maximise your return on cash invested, with your rental income covering your loan.
If you are buying in cash because the property is at the lower end of purchase prices, ensure you are getting high yields of 8 – 10%.
9. Buy in your own name or with a Ltd company.
Consider, research, and take advise on how you should buy,
10. Buy with your head.
There is no room for sentiment when it comes to property investment. Trust in focused research and sound due diligence so that you can buy with your head every time.
For more information contact any of the team at Global Investments at invest@globalinvestmentsincorporated.com
