Real estate could be one of the best places to invest your money, especially if you can find the right opportunity. The first thing to do is choose the best location then you can start searching for a suitable property with the potential to deliver the returns you want.
You should also take the time to consider how much work you want to put into the project; some properties can be improved with simply cosmetic touches and returned to the market for a quick sale and profit. Others require extensive regeneration before you uncover their true value.
Some investors choose to let properties for a while before selling them when the market is at a high point. This is a more long term project and will require more effort. You’ll also need to ensure you get the right mortgage (if you need one to help you complete the purchase) and suitable insurance. Many property owners will choose to seek advice from a lettings agent or property manager. All of these additional costs need to be factored in and will reduce your profits.
If you’re targeting the property market in London there is a third option that could provide good opportunities, particularly when you consider the high price of properties. Instead of investing in buildings you can put your money into land and reduce some of the risk. Space is in really high demand in the capital and is causing prices to rise astronomically. Latest figures show that land prices have increased by an incredible 48% since September 2011 as more and more people look for space to build on.
Brownfield sites are particularly valuable because they are usually the easiest to gain planning permission to develop. Greenfields on the other hand are more challenging, particularly if they are in conservation areas. There are generally more conditions to meet with a Greenfield site and some sales may only be allowed if development is not going to take place.
If you move quickly you could still take advantage of these high land prices and make a good return on your investment. Property developers continue to look for opportunities but the market could cool a little over the coming years as construction prices rise. Residential developments should continue for a while yet as the Government tries to hit their targets for building new homes.
We are one of London’s most knowledgeable and experienced property companies, offering guaranteed rent in Sutton and the rest of the capital as well as managing properties and helping investors to make profitable purchases. Please contact us to learn more about how we can help you determine the best places to invest in.