How to become a successful property investor

property income

Becoming a successful property investor will not happen overnight. When it comes to investing in property, you need to do your research.

With interest rates at their current level, money in the bank is almost collecting dust. In contrast, property prices have soared. While property investment isn’t completely risk-free, if done successfully, it can have substantial financial rewards.

Those who are tempted by the prospect of becoming a property millionaire, or at least making a few thousand pounds of profit, may want to keep reading this guide. Tips and tricks from experts will help you improve strategy and quickly become successful within the property industry. Before you know it, you’ll have an extensive portfolio of money-making developments and properties.

Target apartments rather than houses

Investors who put their money into flats or apartments generate a good return. While those who invest in homes do make a profit, it comes at a higher cost. Apartments make better buy to let opportunities as they have a higher demand, especially in popular areas. Those looking at renting houses are more likely to have families with commitments compared to young professionals looking to live in the city.

Look at city-centre locations

City centre locations across the country provide the highest rental yields and are always in demand. Plus, there are often multiple universities in the city, which means there’s a market for student accommodation too. City centre properties have a higher price point when purchasing, but they also are rented out (or sold) for an even higher amount. This is because city centres are a business hub with accessible transport links and restaurants on your doorstep.

Get expert knowledge on the local area

First-time investors will want their investment to be successful, as it can path the way for further portfolio opportunities. However, even those with extensive knowledge may need a helping hand. RW Invest is a north-west based property investment company that specialises in buy to let properties. Many of their Liverpool and Manchester properties offer high rental yields in restoration areas that continue to increase in value. If you’re struggling to start, getting expert advice may help you out and get yourself on the investment ladder.

Take advantage of low mortgage rates

Those who do their homework can turn an initial investment of £100,000 into millions within no time. Working out an achievable strategy combined with the current low mortgage rates, you’ll be one of the most successful property investors around. Upcoming northern cities such as Liverpool and Leeds provide vibrant investments as well as lower property prices than places like London.

Gain experience through Crowdlending

Becoming a successful property investor does not require purchasing the entire property. Crowdlending platforms such as Reinvest24 enable investors to invest money in rental properties from only €100.

This way it is much easier to invest in multiple properties and build a well-diversified real estate portfolio without taking a mortgage.

The platform does thorough due diligence of the real estate objects before they become available for investment. Depending on the individual real estate project, investors can expect annual average yields of 14% p.a. or more. Plus all of the investments are protected by a first-rank mortgage, which makes it an attractive investment alternative for smaller investors.

Remember the growth potential of off-plan developments

People don’t always choose off-plan developments when investing as it is a little riskier than something already been constructed. However, if you can get in on an early bird deal, you could end up paying half the price for a property. This is especially true when it is an area under regeneration. Your property could gain vast amounts of capital appreciation in a few short years. The use of VR technology in real estate now is helpful. You can take a look at the development you’ll be investing in before the first brick has been laid.