7 Golden Property Investment Rules

ROBERT JONES PROPERTY INVESTMENTS 7 GOLDEN PROPERTY INVESTMENT RULES WHAT SHOULD YOU LOOK FOR IN YOUR PROPERTY INVESTMENT? Maybe it's the location, the discount or even the type of tenant the property will attract. When you're sourcing your investment property, it would be wise to consider all of these, and a few more. I call this.. the '7 Golden Rules'. These should be the foundation of any property investment deal you look at doing. 1. THE AREA Choose an area that has a good mix of homeowners and private tenants. This will balance demand of both groups and will keep the house prices and rental prices affordable. 2. TENANT PROFILE Consider the type of tenants you would rent your property to: LOCAL HOUSING STUDENTS WORKING ALLOWANCE PROFESSIONALS And if you want to rent the property as a: SINGLE LET MULTI-LET Then check that the properties that these tenants would rent, also match your price range and purchasing budget. 3. RENTAL YIELD So you know your area and your tenant profile, but what Rental Yield should you aim for? 8% + 12% + GROSS RENTAL YIELD Most single let Most multi-let GROSS RENTAL properties work best properties work best with a minimum of with a minimum of YIELD 4. POTENTIAL FOR CAPITAL GROWTH Check the Supply of properties in the area against the Demand of the increasing population. If the demand is predicted to rise faster than the supply, then this will offer great potential for Capital Growth. Local Government & private sector investment is also a great sign, as this will help sustain employment and population demand. 5. EXIT STRATEGY EXIT Thịnk about this at the Have a plan A & B for your property exit strategy, so that you don't get caught out if beginning, before you even start your property sourcing your circumstances change 6. POTENTIAL TO ADD VALUE A property that's ready to let will save you time. But a property where you can add value with a small refurbishment (say a budget of £3k to £10k) could increase your return on investment significantly and add value to the property. PROPERTY REFURBISHMENT ADDED VALUE Think about which is best for your budget and your strategy. 7. DISCOUNTS ACHIEVABLE Only deal Motivated Sellers that have a 'Need' to sell, not just want to sell. -15% You will only get the very best deals when you work with Motivated Sellers, and buying your property investment at a discount will improve your rental returns and give you an equity buffer incase house prices change. Most investors look for between 15% to 25% discount, depending on the market at the time and how the property -25% fits the rest of their criteria. Stick to these '7 Golden Rules' to help make your Property Investment Journey successful Infographic brought to you by www.PROPERTYINVESTMENTSUK.cO.UK