The old cliche that timing is everything couldn’t be more true with property investment. Housing markets tend to work in cycles, so while investing at the peak of a boom might not get you the best returns in the short term, over time you are still likely to see your investment rise. Getting in when prices are at a lower point, or just as things are beginning to rise, is often the preferred strategy. Keeping an eye on house prices in an area can be helpful, with some locations performing more strongly than others at different times. The length of your investment matters – property is normally a long-term commitment, rather than a way to make fast money, so investors should be prepared to see their gains grow over time.
Choosing the right place to invest is vital, but is also a decision that will vary from investor to investor. Emerging markets are a good place to start, which could include areas that are about to receive or have recently benefited from local investment, or parts of the country that have been relatively undiscovered until recently. While London was once the go-to property investment location, this has been overtaken by parts of the north-west including Liverpool and Midlands where rental yields as well as capital appreciation are much stronger. Investing close to where you live, in an area you are familiar with, might seem appealing, but researching and considering other areas can prove more beneficial in the long run.
Who you work with can have a big effect on the outcome of your investment, so doing your own thorough due diligence is vital before making a big commitment. For example, working with property developers and contractors who have a good track record should mean that you can be confident your investment will pay off. You should also look into how each company works, to make sure that it fits in with your own investment strategy. For example, will you be buying a tenanted property with assured rental yields, or would you prefer a more hands-on approach where you manage the property yourself?