Thorough market research and analysis is a vital part of property investment and should be carried out before even viewing your first property. You might be looking for shorter-term capital gain, or interested in long-term investment and the more reliable and less risky rewards that this can bring, but either way, you will need to do your research, devise a business plan, and seek advice.
Property investing comes with an element of risk. More risk is involved if you are borrowing money to help fund your investment, but whether you are borrowing or not, a savvy property investor needs to develop a sound investment strategy – based on careful planning and research – if he or she is to succeed.
Why is market research important?
A particular location might be a pleasing prospect for a family home, but that doesn’t mean it is the ideal place in which to buy an investment property. Market research is essential because it will allow you to qualify a location based on multiple factors. This will include the potential for capital growth in future, average rental yields, consistent tenant demand, community and environmental factors, local amenities and transport links, and whether any major regeneration projects are scheduled for the area.
Where your start
Before you enlist advice from anyone, consider your investment objectives. Once you have an idea of these, seek help from a financial adviser who will help you to access your investor-risk profile. This will determine what you invest in, how much you want or are prepared to borrow, whether your priorities are regular monthly income or capital growth, and for how long you are intending to hold your investments.
You should also think about all your likely outgoings. You will need to make sure you know exactly how much the initial costs of buying a property are, and what your on-going property running expenses will be.
Your property search
A well-established, local letting agent with a large portfolio of rental properties is always the best person to ask whether a property is suitable for letting, before you even consider making an offer. Remember – selling agents are instructed and paid by their vendors so will always be keen to sell you one of their properties. Only a letting agent can tell you whether the property you have in mind will consistently meet local rental demand, achieve a high occupancy level, cost you less in running repairs and overheads, and therefore deliver the best-possible financial return.
Whether you are keen to invest in property in Westminster, Pimlico, Victoria, Belgravia or other parts of Central London for the first time or looking to add to your existing portfolio, why not contact our team of experienced property search, letting and management experts today?
