The property market has gone from strength to strength, recording record highs in a climate surging with tenant demand.
Even though the market is boasting extremely attractive market conditions, there is still a method to success in property investing. In this article, we will address the main do’s and don’ts in a competitive market, to ensure investors achieve the best returns from their investment.
Do’s:
Research
To ensure a successful investment, an investor must do their real estate homework. A great place to start is to think as if you were a tenant and create a list of amenities you’d expect from a rental.
These should include easy access to transport links, proximity to the city centre, an abundance of job opportunities, a thriving economy, and a rich cultural offering.
By conducting in-depth research, investors learn how to make the most profitable returns in the current market, understanding the types of property and in which areas, generate the most lucrative returns.
For example, luxury new build developments located in touching distance of inner-city centres offer the most sought-after apartments for renters, with restaurants, music, shops and employment opportunities right on their doorstep. As the student and young professional community dominate the rental landscape, the savvy investor knows to cherry-pick the areas which attract this demographic of tenant, offering a high standard of living and appealing lifestyle which in turn, ensures a successful long-term investment.
Source Advice From Actual Experts
When it comes to making important financial decisions, it’s imperative to feel secure in knowing how your money is going to serve you.
Speaking to an expert makes the process from start to finish much simpler and easier for an investor, and whilst it comes at an additional cost, it can prevent the potential substantial cost of making a mistake with your investment.
Another major benefit of speaking with property experts, is gaining access to the most exclusive and unique investment opportunities on the market, which often come with substantial savings and offers. For example, apartments in Alesco’s latest Liverpool flagship scheme have been secured at 20% below market value and come with full deposit protection and Stamp Duty cover.
At Alesco, we have over 20 years of experience in helping property investors diversify their portfolio and achieve long-term financial growth. We specialise in buy-to-let opportunities in the Northern Powerhouse; regions including Manchester, Liverpool, Birmingham, Leeds and Sheffield.
Don’ts:
Overlook Tenants Needs
Recognition of your tenants’ needs can easily be overlooked in the decision-making process of a property investment. However, meeting the needs of a new generation of tenants can be the difference between a highly lucrative investment which has long-term security and an investment burdened by longer void periods and reduced rental income earnings.
Tenant needs have evolved and only accelerated at a faster rate amid the coronavirus outbreak. Lifestyle changes such as working from home and the successive lockdowns has spurred many to move in search for space, inside and out.
To ensure demand and tenancy renewals are keeping pace, investors need to listen to the market and capitalise on the ever-changing market conditions. The most notable consideration comes in the form of location preferences. As Covid-19 restrictions continue to ease, the buzz and vibrant lifestyle of city centres is regaining momentum and has led to a renewed appeal for urban living in prime regional towns and cities.
Newly published figures indicate the largest increases in demand are regions in the North and the Midlands. More specifically, Rightmove figures show rental enquiries increased by a whopping 102% in Sheffield, 69% in Manchester, 58% in Nottingham and 55% in Leeds. These figures illustrate the growing appeal of regional city centre living – a trend which will likely continue as we enter the new post-Covid era.
With growing demand retuning to cities, investors can expect to see shorter void periods and rises in rental prices. What’s more, the areas which are seeing the greatest rental demand are home to some of the most affordable off-plan developments, offering investors a lucrative opportunity and be a part of the new economy.
Wing Your Investment Strategy
Real estate is a real, tangible asset which is continually outperforming any other asset class. However, without a strategy embedded in the heart of the investment, investors run the risk of not fulfilling their investment goals.
Every investor has different ambitions and goals subjective to their individual situation. Whether it’s a long-term strategy with an eye for diversifying their investment portfolio or to centre their strategy around short-term lets for holiday rentals, either strategy needs to be based around the investor’s ambitions and long-term goals.
At Alesco, we help our clients achieve long-term financial growth through off-plan developments as these type of investments offer the most potential for capital growth. Our whole portfolio of developments are pre-approved for long-term letting services, and a selective number of developments have been approved for both short and long-term let, allowing investors the freedom to choose how they wish to let their property.
Overall
By following these investment guidelines and allowing your money to work for you, you will see significant financial growth. Bear in mind, success in property investing is not rocket science! It just takes a strategy, thorough research and help from the experts to secure the best opportunities on the market.
To find information on our latest investment opportunities, get in touch today to speak with one of our consultants – (0)203 819 7366, or visit our website.
