Easy property investment mistakes and how you can avoid them
If you have reached a stage in your life whereby you are looking at maximising your income, or perhaps even thinking about saving towards retirement, there is no doubt that property is a fantastic way of boosting your finances and preparing for your future. Investing in the UK property market produces high returns and has excellent opportunities for capital appreciation. With this being said, while this is a lucrative way of earning an extra income, certain issues can arise that can hinder the success of your investment. If you feel like you need to become more mindful of the problems you may face as an investor, here are some of the biggest property investment problems that may arise and how you can overcome them.
Working with a company that is not right for you
In the initial stages of your property investment, to ensure you continue to have a fruitful investment, it is essential to do your research regarding the property company you wish to work with. Investing with the wrong property company can have a detrimental effect on your investment as you may be miss sold properties, told false promises or offered scams that claim to produce unrealistic returns through fake, made up properties.
There are some telltale signs that you can look out for to avoid investing in a dodgy company. This is where it will stand you in good stead if you perform due diligence on properties and property companies yourself. By making yourself aware of the rental returns a city offers, you can gauge whether a property company is advertising properties with impossibly high rental yields that are completely unlikely for the area or property in question.
When performing your own research on a location or development, it is worth looking into property investment companies on the likes of Trustpilot and Google reviews. This will provide a good indication of the companies that should be avoided at all costs. One great company is RW Invest who have a five-star rating on Trustpilot. With high ratings and reviews, you will feel more confident in trusting companies like this to find the right investment for you. High ratings teamed with strong opportunities for investment make for an ideal company to work alongside during your property venture.
Investing a property that isnâ€™t right for you
Another easy mistake to make is purchasing the wrong type of property, situated in a place that doesnâ€™t match your needs. Location is key in securing profitable returns, so it is imperative you perform your own research so you can decide which are the property investment opportunities for you. London has long been regarded as a property hotspot whereby investors can secure profitable returns through high yielding properties. However, over the past couple of years, the North has become the stronger region as London has failed to satisfy investors due to falling property prices and low rental yields. The north-west is best in terms of rental yields and this look set to continue well into the future.