Thursday, June 12, 2008

Investment Property: Building Better Returns

Investment Property: Building Better Returns
Despite reports of a slowdown in the UK property market,
many experts claim that investment property is still a
source of significant profits for investors. Although most
investors would find it difficult to profit from
conventional property investments like buy to let and
renovation, experts say that the astute ones can still
manage to ensure a good future. This is possible if they
allocate less money into traditional investments like
commercial property and investment funds.

Do your research

Whenever the housing market becomes unstable, many people
become hesitant to put their money in property. However,
what many of them do not realise is that there are various
forms of property investment opportunities, which range
from investing in a property fund to buying pieces of land.
For those investors who want to take a crack at investing
in property, they will fare better if they do their
homework and be diligent about it. The three things that
matter most for those who aspire to be successful property
investors are: knowing what form of investment is
appropriate for them, the amount they can really afford to
invest, and whether investing in property will exactly
provide the returns they are expecting.

Property Renovation

There is money to be made in property renovation or
development. The most common method for this type of
investment is to acquire property at an affordable price,
have it renovated, and then sell it for a profit. But
investors who plan on investing in property renovation need
to know beforehand what they are buying and the amount of
work it will need. To make sure that they will not be
making huge mistakes, they are advised to ask for guidance
from a professional who can inform them precisely of every
aspect of the repair process.

Buy to let

Investing directly in the residential market is the most
recognized form of investing in property. While they have
become increasingly popular in recent years, some observers
caution that the market is on the decline. Although buy to
let it is not exactly as hot as it once was, many investors
seeking steady growth are still putting their money in it.
For them to be successful in a slowdown, they need to be in
it for the long-term, with rental income the end result and
the potential of capital appreciation an added bonus.

To be successful in this industry, investors need to be
armed with clear cut and effective investment property
strategies. It is vital for them to know the basics of
property investing such as when to buy, where to buy, when
to sell, how to finance their portfolio, and how to buy
below market value. In addition to this, when investors are
totally aware of the risks and how to manage them, they
will be ensured of better returns.


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Parmdeep Vadesha is a property investment expert and
founder of the largest community of property entrepreneurs
on the web who buy below market value properties from
distressed homeowners facing repossession, divorce and
bankruptcy. He writes a monthly newsletter for over 70,000
property investors worldwide -
http://www.Property-System.com

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