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property investment strategies

Strategies for property investment are plentiful and there’s always investors on hand to give out advice to the novice person out there. It’s not an easy thing to do by any means but if done properly, it will improve your wealth status considerably over a period of time.

Fundamental investment strategies do exist and best of all, they can be adjusted to suit your own personal lifestyle and circumstances.

There’s no guarantee that strategies will work all the time and there’s certainly no generic strategy that is implemented for each property and region. It will all depend on an investor’s personal finances, investment objectives and mindset to make the strategy work.

SOME STRATEGIES TO CONSIDER

The classic buy and hold property strategy is basic and requires little to do in terms of wealth generating. This is a great strategy for first time investors to build up equity over a long term. Renting out the unit allows you the potential of rental yields paying for the cover of the mortgage period. Additional properties can be built up in a portfolio to create yet more cash flow opportunity. 

There are additional niche investment strategies such as buying off plan property for instance. This is effectively a new build in which the property value can appreciate even up to its finish date. It could be a question of holding or selling once completed.

Buy to sell is another property investment strategy which requires a buoyant property market to get the most from the initial purchase. ‘Flipping’ property is a great way to generate almost immediate profit. All buy to sell requires is the right property and some reputable builders to refurbish the place within the boundaries of a set budget. There are other variations to see through this strategy such buying up larger one bed flats and remodelling the unit to create a two bed.

A common practice being used in modern cities is buying up commercial property to become residential. With the debate about the decline of high street shopping raging in parts of the world, a property investor could see a long term strategy for using empty commercial units. Check with local planning laws first but there could be some immediate returns from buy to sell strategies here.

Holiday letting could be a strategy completely suited to a place like Dubai for instance. By targeting the right customer with promotions, it could be possible to get many occupants staying short term during high seasons and generating a real cash flow. The downside is the marketing, which is constant and not suitable for someone who isn’t prepared to put in the hours.

property investment
YOUR BUSINESS PLAN

Look at each of your strategies in particular the advantages and disadvantages of each.

Score them 1-10 based on your personal circumstances like income, market conditions and areas that are being looked at for property.

Think about how much time and importantly, how much information you need to research to make the investment strategy work out. Weigh up your return on your investment vs time and effort. Ask yourself: is it worth it to pursue that option based on your personal circumstances?

Speak to a mortgage broker to determine the options you have for financing each transaction. Always plan out a backup or emergency fund in case any of your circumstances change suddenly.

Finally, be sure to speak with our consultants who would be happy to assist you in finding the right property for you. Just contact us using our phone number (+44 (0) 203 911 5892 or +1 (646) 908 2628) or use our contact form here.

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