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Making a Shrewd Investment in Property
Added: 09/04/2006 Type: Summary Viewed: 193 time(s) [ Not Rated Yet ]

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Making a Shrewd Investment in Property

What is the best way to invest in Property to achieve a high rate of return and play it safe? I have invested in property all my life and if you follow the steps below, then I believe that you will make a safe investment which has the potential to grow:

1) Invest in small houses that are ideally suited to the new average family unit of 2 adults and 2 children. These types of houses will always be in demand and are easier to shift when the property market is not behaving so well. They are also fairly easy to rent out whilst you wait for the property to appreciate.

2) Buy your property in areas that are close to all amenities and have good transport links with the City Centre. Make sure entertainment facilities are nearby as well as good schools and universities. A large retail park with good shopping facilities must be within easy reach although you don't want to invest on its doorstep.

3) Buy a property which has clear potential for adding an extra room or building an extension. A property with some land can end up being a fantastic investment if you get planning to extend the property even if you don't build the extension your self!

4) Buy in areas where there are plans for long term regeneration nearby and you can see a clear reason why people will want to live there.

5) Avoid new builds and stick to established areas for housing. Sometimes you can make a killing buying new builds and watching them appreciate quickly, but often when an area is released for new builds, the builders move in and build properties to quickly for the market to absorb. This leads to a stagnation of house prices until the properties have been absorbed by the local community.

6) Have a long term plan for the properties. Buying and selling properties quickly is best left to the experts and even they sometimes get their fingers burnt. Be prepared to hold the property for at least 5 years, preferably closer to 10 and you will ride out any short term cycle in the property market.

7) Obtain multiple quotes from lenders and beware of penalty clauses that do not allow you to sell the property or transfer your loan for many years. Get quotes from specialised lenders as well as the traditional banks. Get quotes from independent financial advisors who are able to scour the whole market and get you quotes from many lenders. Beware the advisor who charges you a fee as most get paid a healthy fee from the lender when you proceed with the loan.

If you follow the steps set out above, you are most likely to achieve a high rate of return from your property investment with minimal risk.

Nazir Daud
http://www.citylocal.co.uk

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