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How to invest in Property

Property investment is becoming a really popular way for people to fund their future lives. Our guide on how to invest in property looks at the finer details of the investment decision.

Selecting the right property

Making the choice of which property (or properties) to invest your money in is a vital one. If you make a bad selection at this early stage in the property investment process then you'll find yourself struggling to make the sort of returns that you may have envisaged.

A lot of clients, when looking to purchase for investment purposes, often make the mistake of identifying the wrong types of properties. In essence, they look for the qualities that they would associate with their own home, rather than those of value as an investor.

So, if you're serious about getting a return on your investment, you need to think like a professional property investor from the outset.

Think about how you are expecting to make money from your investment - are you purely looking for your asset (the property in question) to appreciate in value over the coming years, or are you expecting some sort of rental returns?

Rental Returns and Property Investment

Rental income can really help the budding property investor, as long as you handle the rental process correctly. Again, this really comes down to thinking clearly about how you see yourself generating wealth from your investment.

Let's think about a typical example of attempting to invest in the UK property market as a buy-to-let investor. If you are looking to make money from this type of investment then you need to consider your target market - who will be renting your property from you?

Many investors look to snap up property in towns and cities that have large student populations. This is done in the belief that there will always be potential tenants for their properties. There may also be an added bonus here: parts of towns and cities where students reside may be less desirable for some, ensuring that house prices remain relatively low. This means that, in the right location, you should be able to buy a property cheaply and then rent it out relatively easily.

All sound pretty simple? There are some pitfalls to avoid. You need to plan your purchase very carefully. To begin with, consider some of the basics - how far are students prepared to live from their college or university? How can you maximise the number of tenants in the property? How is the rental going to be managed? If you ask a letting agent to manage the rental on your behalf then you'll need take their fees into account, which will effect your bottom line.

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