Property investment is one of the hottest things going among both casual and professional investors these days. However, not all property investors earn the high returns often associated with buying residential properties. You do not have to be one of the failed investors if you follow our golden rules for success.
These five rules are time-tested and true. The best investors follow them, knowing that a high return on investment is likely in most cases. And even when a given property does not meet expectations, it is the rare exception.
Here are our five golden rules for success:
The very first thing that needs to be established about property investment is the fact that it requires patience. Remember, you are purchasing investment properties for sale; properties that will yield high returns through residual rental income. Nevertheless, earning those returns requires time.
If you are simply looking for homes you can turn around and resell in under six months, you are not truly engaged in property investment. Instead, you're engaging in a type of short-term investment similar to stocks and bonds. It's a different environment altogether.
In a perfect world, every property you purchase would be at a bargain price and would require little or no renovation. However, we don't live in a perfect world. You need to understand that the world of property investment regularly includes things like:
Do not be foolish enough to believe that any of your transactions will go smoothly. Adopt a realistic approach with the expectation that there will always be hurdles to overcome.
Investment properties for sale, by their very nature, involve many unknowns. It is important for investors to do plenty of research before purchasing a property. That involves inspecting the house, finding out about any legal issues involved, and thoroughly researching neighbourhoods, rental rates, property values, and so on. And when you think you are done researching, start over and do it again.
If you can pay cash for your rental properties, you are in the best possible position. However, if you cannot, you are going to have to secure buy-to-let financing. These packages typically require monthly rental income of at least 125% of the mortgage payment. If you are using financing, do not overextend to the point that one or two negligent tenants will put your finances in a precarious position.
The wisest investors make property investment work by focusing on specific geographic areas and tenants, and then maintaining that focus. So get to know the areas where you want to purchase. Get to know the types of tenants that live in those areas. By maintaining your focus, you will maximize your ROI.
The right property investment can mean significant returns through rental income, for many years into the future. Fruitful Property is in the business of helping you find just the right investments for your circumstances. Let us put more than 30 years of experience to work for you. You'll find we present our clients with only the most attractive investment properties available.
Investing in property is a great way to secure your financial future by building a portfolio offering a steady income and excellent rates of return. The best part about it is that just about anyone can do it. If you are interested in this type investing, keep your options open; including distressed properties.
All over the UK, there are quick sale properties to be had by anyone looking for a bargain. However, for investors, these properties are not always the wisest choice. Before you invest, be sure to talk things over with your asset manager or property agent. They will help you make wise decisions.
Rental property represents one of the best ways to turn investment money into a high return portfolio. However, property investment is more than just throwing money at a house. Sound investing requires an understanding of how the system works so you can use it to your advantage. It requires knowing the keys to success.
Rich Dad's Cashflow Quadrant
a compelling explanation of the core financial principles of behind being successful in work, business and investing.
exciting and practical insight into the business skills and sports psychology behind how England won the Rugby World cup in 2003.
The Art of the Deal
like him or loath him, Trump shares his story and the drive that created a self-made billionaire, mainly from property.
FT Weekend Money supplement
essential weekly reading for UK investors wanting to know the best ways to invest and protect their money.
Renting Out Your property for DUMMIES
straightforward advise and practical checklists for managing all aspects of your UK rental property.
inspired stories and life lessons from the man who created Apple and then changed the world twice!
sage advice on business and leadership by the arguably the greatest business leader of the 20th Century.
“Over the past few year we have purchased many properties through Fruitful Property and were delighted at how easy they are to do business with. They introduced me to properties…
“Since 2010, Fruitful have helped me buy five post-repossession investment houses close to London. I am very busy growing my company and would never have had the time to find these…
got a quick question?
We're here to help! Just fill in the form below and we’ll get right back to you.
Access off-market, high yield investment properties.
Act now. Profit from a recovering UK property market.
Are your investments working as hard as possible?
Earn 15% annual return on your money with off-market bank repossessions.