The low exchange rates and popularity of tenancy is the main reason why so many people decide to rent investment properties. Naturally, the amount of rent determined by convenient localisation decides about how fast our property will be sold. Does only location matter? You will experience outstanding success with satisfactory interior design.
How to invest in properties?
As you may guess there are many people willing to live in properties especially in bigger cities such as Manchester. The wanted places are prominent business premises and academic centres. Renting the acquired flat generates a nice source of income.
If you want to get a good value of money from future tenant, focus on finishing the flat. The high of rent is a key.
How you could create the system that will gather crowds? The basic things to consider are advertisements and convenient locations. The demand is gradually increasing in places overcrowded by students and businessmen.
In such localisations the demand is really high, even bigger than in nearby smaller agglomerations.
An obstacle can be our budget so we can only dream about having a house nearby centre or another strategic place for given group of collectors. Therefore it is time to encourage them by interesting and functional interior. It really works sometimes!
Who wouldn’t like to live in an apartment for better unit? The more time you invest in interior appearance of property, the bigger profits you will get for renting. A very good and worthwhile remark.
Don’t exaggerate with too expensive renovations, if the property is situated within unattractive neighbourhood or in neglected building. It will not lead to higher rental charged.
You must have already heard that the localisation is the most important.
Where to invest for the future?
Amongst others we should invest in apartments that we can prepare for renting. They should be practical and neat so we will easily catch the attention of potential tenant. Try to set up the house by investing small amounts and workload.
First let’s indicate the target market which depends on our preferences, location and residential area. Setting up will be only a pleasure then.
Nowadays the most group of people looking for apartments are the youth: students, young marriages with no funds on their own properties and persons who start their careers inpublic administration.
Thus you should remember about finding a place with convenient localisation to create conditions favouring the right working, cooking and having a rest.
Is interest by renting houses is on a high level?
Currently about 4-6% – is and annual interest return rates on investment property. You can read in professional newspaper (it happens that if you will make a very good purchase, the profitability may be even twice higher in percent’s) What means a good purchase?
A fine estate always has tenant number big enough and it continues to attract the interest which is huge. The owner has a chance to choose a tenant who will decide to sign an agreement with him. Therefore how to determine an infestation viability in property for renting?
At first we find out about the apartment value. The unique, amazing house – that’s right. Most often offered flat is marked out as being different cause we put our money into renovations etc. Disadvantageous situation is reflected in the spending a few years in given house, experiencing short-lived magic moments.
Turn off the sentimental thinking and try to objectively estimate valuation of those four walls.
We can analyse selling offers concerning similar flats in the area. There is also „shortcuts” option by determining prices basing on other advertisements on social networking sites.
If you want to have a professional approach you can pay for pricing to expert or put the house on sale and observe the level of interest. Don’t forget that the value of investment real estate is variable for merchants or tenants.
If you have the value of property determined, now let’s set the amount of renting without bills. The average rent prices in different variants may be helpful. You can take advise from mediator of ground real estates or verify the other similar offers. Here mismatch may be capital….
Is it possible to be „lossy” on renting?
Account should be taken of the fact that in the future the following renting is changing in favour or not. That kind of assets has a low flow. It can take a few months to get back our cash invested into the property by its sale.
Moreover, our house’s value may be lost within medium and short term
The investment properties, buy it for cash!
In summary, popularity of property investments constantly rises. It can be proven by very high percentage of cash transactions. Moreover even the greatest proponents of that kind of saving are looking for others capital locating methods because of bank deposits with lower interest rates. They often choose a residential market.
It is a very profitable „investing process” However the most profitable for properties purchases are loans.
So I had a sensitivity to the investment properties thanks to the people I’ve met in the UK. They know how to gradually investing on that market so I decided to learn how to do it.
„Invest in yourself or in properties.” – Warren Buffet
NOTE: I present private opinions and I am not responsible for the readers' decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.